- Telegram partners with xAI for Grok AI, boosting market presence.
- $300M deal, including cash and equity.
- TON token surges 16-18.5% following announcement.
On May 28, Telegram announced a partnership with Elon Musk’s xAI to integrate Grok AI into its platform, reaching over 1 billion users. The one-year agreement includes $300 million in cash and equity payments to Telegram.
This collaboration enhances Telegram’s financial prospects, with the platform also securing 50% of xAI subscription revenue generated through it. Immediate market reactions included a significant increase in the TON token’s value as investors showed confidence in the collaboration.
Telegram and xAI Team Up in $300M Grok AI Deal
Telegram’s new partnership with Elon Musk’s xAI sees Grok AI integrated across its platform, affecting over 1 billion users. The deal, valued at $300 million, provides Telegram significant financial backing. Pavel Durov, Telegram’s founder, confirmed the arrangement via a statement on X (formerly Twitter), asserting the integration would provide “the best AI technology on the market.”
The agreement promises substantial revenue enhancement, with Telegram receiving not only cash and equity but also half of the xAI subscription revenues from the platform. This move aligns with Telegram’s efforts to refinance and reduce its debt while trailing technological advancements. The integration comes amid a competitive climate with AI giants like OpenAI and Meta entering similar alliances.
The market responded positively; particularly, the TON token surged between 16 to 18.5%, indicating strong investor support. Durov’s confidence in Musk’s engagement provides a foundation for anticipated large-scale adoption and change. Other major industry players did not formally comment, but the asset price spike demonstrates optimism in both AI and messaging enhancements.
TON Token Rallies as Telegram Announces AI Integration
Did you know? This is one of the largest direct AI integrations for a messaging platform, comparable to when Meta introduced AI into Instagram and WhatsApp.
According to CoinMarketCap, Toncoin (TON) saw a price increase to $3.42, with a market cap of 8.51 billion. The 24-hour trading volume escalated to $915.52 million, marking a 460.44% increase. Over 24 hours, TON’s price rose by 13.83%, following a 16-18.5% surge prompted by the integration news.
Insights from the Coincu research team highlight the strategic importance of this integration, framing it as a pivotal juncture in AI adoption for messaging platforms. Historically, AI enhancements have boosted user engagement and monetization, suggesting an optimistic financial outlook for all parties involved. Pavel Durov, Founder & CEO of Telegram, stated, “This summer, Telegram users will gain access to the best AI technology on the market.” Given the precedent, regulatory and technological shifts are expected as similar alliances continue to shape the sector’s landscape.