Telegram has struck a major deal with Elon Musk’s xAI to embed Grok AI deep within its encrypted messaging platform. This isn’t just a casual partnership—xAI is investing a hefty $300 million, a blend of cash and equity, signaling strong confidence in the venture. In return, Telegram stands to earn half of all subscription revenue generated by Grok through its app.
This bold move into AI comes at a particularly intriguing moment for Telegram. CEO Pavel Durov is grappling with significant legal challenges, and the platform faces scrutiny from various governments worldwide. Yet despite these hurdles, Telegram’s financial position looks solid. The company is preparing to raise at least $1.5 billion through five-year bonds, offering a tempting 9% yield to investors. These funds will also be used to repurchase debt from a 2021 bond issue. Notably, major players like BlackRock, Mubadala, and Citadel are showing strong interest, indicating their belief in Telegram’s long-term potential.
The numbers back this optimism. In 2023, Telegram reported a hefty loss of $173 million. Fast forward to 2024, and that deficit has turned into a $540 million profit on $1.4 billion in revenue. Looking ahead, projections for 2025 predict profits exceeding $700 million with revenue climbing past $2 billion. Clearly, the messaging service is on an upward trajectory.
So, what exactly will Grok AI bring to Telegram users? The vision is for xAI’s conversational intelligence to add a whole new dimension of smart features—think faster, more accurate information searches, help with composing messages, and a suite of automated capabilities. This move could open new monetization doors for Telegram, giving it a competitive edge against rivals like Meta, which is rolling out Llama-powered AI on WhatsApp.
All this progress unfolds against a turbulent backdrop. Pavel Durov’s legal troubles loom large. In August 2024, he was arrested in France and later indicted on multiple serious charges, including complicity in distributing child exploitation content and drug trafficking, based on accusations that Telegram failed to adequately police harmful content. Though initially detained, by March 2025, Durov was allowed to leave France temporarily. What happens next remains uncertain, but the shadow this casts over Telegram is undeniable.
It’s not just Durov’s personal legal battles that trouble the company. Several governments are growing impatient. For example, Vietnam’s Ministry of Science and Technology has ordered internet providers to block Telegram, accusing the platform of becoming a breeding ground for criminal activity. Officials claim nearly 70% of Telegram channels and groups in Vietnam are involved in illicit activities ranging from scams to drug trafficking. Telegram responded with surprise, stating it has cooperated fully with Vietnamese legal authorities.
Returning to the xAI partnership, this alliance clearly signals Telegram’s determination to build its future around AI. The substantial investment and revenue-sharing arrangement highlight the significant value both parties see in rolling Grok out to millions of users worldwide.
The next year will be critical for Telegram. The challenge lies in balancing rapid innovation with responsible management, proving it can evolve technologically while navigating legal and regulatory hurdles on the global stage. The company’s ability to pull this off could define its trajectory for years to come.
