Telegram founder Pavel Durov is facing public embarrassment after Tesla and SpaceX CEO Elon Musk appeared to disown a high-profile artificial intelligence deal between the two tech billionaires.
In a post on X (formerly Twitter), Durov had announced that Telegram would be teaming up with Musk’s xAI to bring its Grok chatbot to the messaging platform’s reported one billion-plus users.
He described the agreement as a major move that would integrate “the best AI technology on the market” across all Telegram apps starting this summer.
But the fanfare was quickly cut short. Musk, responding directly to Durov’s announcement, wrote bluntly: “No deal has been signed.” The statement, broadcast to their combined audience of over 221 million followers, immediately cast doubt on the legitimacy of the announcement.
Durov attempted to defuse the situation, replying to Musk’s denial by clarifying that while a formal contract had not yet been signed, both parties had “agreed in principle.” His response suggested negotiations were still underway and pending final paperwork.
According to Durov’s original post, the tentative one-year partnership would see xAI’s Grok AI system integrated into Telegram, bringing advanced chatbot functionality to users worldwide.
In exchange, Telegram would receive a £223 million package composed of cash, company shares, and a 50% share of subscription revenues generated through the app.
Durov argued that the arrangement would provide Telegram with substantial financial reinforcement, noting that xAI would supply $300 million (around £223 million) in both cash and equity, alongside ongoing subscription revenue.
While some observers saw the proposed deal as disproportionately generous to Telegram, the agreement could give xAI valuable access to a massive user base.
Telegram is believed to have over a billion users globally—an appealing prospect for generative AI firms seeking to scale operations and recoup investment in advanced technologies.
The public disagreement, however, has raised fresh questions about the deal’s future and whether it will proceed at all.
Generative AI companies, including xAI, are currently under pressure to demonstrate profitability after years of heavy spending on research and development.
A deal with Telegram could provide xAI with a significant platform for growth—if both sides can agree on the details.
