On May 28, Elon Musk clarified that xAI and Telegram had not signed any formal agreement regarding the distribution of the Grok large language model, despite an earlier announcement from Telegram founder Pavel Durov on the same day.
Durov stated that he agreed to a one-year partnership with Musk, which will embed Grok within all Telegram apps and provide the messaging platform with $300 million in cash and equity, along with 50% of every Grok subscription sold through Telegram.
Musk responded several hours later on X, clarifying that “no deal has been signed.” Durov conceded the clarification, noting that both parties had “agreed in principle,” though some formal procedures remain incomplete.
No specific timeline was provided by either party regarding the completion of formal documentation or the official launch of the initiative.
Funding Initiative Aligns with Corporate Objectives
Telegram is carrying over $1 billion in liabilities stemming from bond offerings it launched in 2021 and 2023 to finance its operations.
Durov, who has traditionally supported the company using personal loans, is now exploring alternative revenue sources ahead of a bond maturity scheduled for next year.
According to the preliminary terms, xAI would transfer $300 million to Telegram and assign an unspecified equity stake—details neither company has disclosed. In return, Telegram will earn a recurring share of Grok subscription revenues generated through its in-app payment system.
Musk launched xAI last July to train Grok using publicly available information and content licensed from X. The model stands as a competitor to ChatGPT by OpenAI, Claude by Anthropic, and Gemini by Google.
Integrating Grok with Telegram would provide it with instant access to a broader user base than the approximately 600 million accounts currently registered on X.
Musk Ends Government Role After 130-Day Term
Musk’s comment regarding the unsigned contract came as he stepped down from his interim role at the U.S. Department of Government Efficiency, informally referred to as DOGE.
On May 28, the White House confirmed that the billionaire’s 130-day term as a special government employee will conclude this week. In a post shared on X the same day, Musk acknowledged his exit, expressed gratitude to President Donald Trump for the appointment, and reaffirmed his objective of curbing federal expenditures.
Officials appointed Musk as a “special government employee,” a status that allows up to 130 days of federal service each year. Since Trump took office on January 20, this designation is set to lapse by the end of May.
