TON surges 16% following Telegram's $300M xAI equity deal to incorporate Grok.

Telegram has evolved beyond being merely a chat app prioritizing user privacy for its crypto audience. With a significant partnership worth $300 million with Elon Musk’s xAI and a $1.5 billion bond issuance, it has transitioned from a rebellious newcomer to a profit-driven entity.

The announcement of this collaboration led to a 15% surge in TON’s value, following confirmation from its founder, Durov.

However, the company’s future, particularly regarding potential IPO plans, is entangled in legal challenges occurring in French courts.

Musk’s Grok Finds a Home on Telegram, for a Price

In a noteworthy announcement, Telegram revealed an exclusive agreement with xAI that will integrate Grok, Musk’s large language model chatbot, into its platform for a year. The deal includes $300 million in cash, equity, and 50% of subscription revenues from Grok via Telegram.

CEO Pavel Durov expressed his enthusiasm for the partnership, describing it as a pivotal moment for the platform. This represents Telegram’s first substantial attempt at monetizing its considerable user base of 1 billion monthly active users, departing from the reliance on donations and debt.

Durov assured users that their data would remain secure: “No Telegram data will be supplied for Grok training,” he stated. This strategic move positions Telegram ahead of competitors like WhatsApp and Snapchat, who have struggled to monetize AI within their messaging frameworks.

From Losses to Gains: An Unexpected Profit Surge

Telegram also reported its inaugural profit of $540 million in 2024, derived from $1.4 billion in revenue, showcasing a stark recovery from previous losses. With 15 million users paying for services and a daily growth rate of 2.5 million users, the revenue for 2025 is projected to reach $2 billion, with profits anticipated to exceed $700 million.

For investors, these figures affirm the viability of Telegram’s long-awaited monetization strategies.

In addition to its AI partnership, Telegram finalized a $1.5 billion bond offering that was oversubscribed at a 9% interest rate, with prominent backers including major investment firms. This five-year bond restructures debt from a previous convertible note and includes an option linked to an IPO, indicating an implicit bet on a public offering before 2030.

The successful bond offering caught some market observers off guard, especially in light of Durov’s ongoing legal troubles. Nonetheless, investors seem willing to overlook this risk, focusing instead on Telegram’s growing financial metrics.

The Paris Dilemma: Legal Challenges Loom Large

Despite recent successes, a significant legal issue casts a shadow over Telegram’s trajectory: Pavel Durov was arrested in France in August 2024 and has faced multiple charges, which include not cooperating with child safety investigations.

Durov is currently under judicial supervision and cannot leave France, with a recent court ruling preventing him from traveling to the U.S. for discussions with investors. Durov stated, “We complied with all the binding legal requests we received,” and expressed confusion over the allegations against him.

This legal situation may complicate plans for an IPO, raise governance concerns, and hinder global operations, amplifying broader discussions about the responsibilities of end-to-end encrypted application providers.

IPO or Intermediate Step? What the Grok and Bond Deal May Indicate

Is Telegram potentially on the path to an IPO? It’s possible, but not guaranteed. The conversion option in the bond indicates that this route remains viable. However, some analysts posit that the high-yield bond may serve as a temporary measure to secure growth without the scrutiny of public markets while Durov addresses his legal challenges.

The one-year integration of Grok also raises questions: Will subscribers remain engaged? Can xAI meet expectations? Will regulators closely examine data practices despite Durov’s claims? And if Musk encounters any issues, what will happen to the pledged $300 million?

Ultimately, Telegram’s shift in strategy has allowed it to shed the image of a struggling, money-losing outlier. Whether it becomes a successful public technology company or a warning about platform governance in an encrypted era will likely depend on court rulings as much as on market dynamics.

Telegram Timeline

Aug 24, 2024: Durov arrested in Paris
Mar 19, 2025: Telegram achieves 1 billion monthly active users
May 12, 2025: French court prohibits Durov’s travel to the U.S.
May 28, 2025: xAI and Telegram announce Grok partnership
May 28, 2025: $1.5 billion bond issued at 9% yield

Final Thoughts

Telegram’s recent advancements, characterized by AI monetization and a significant debt offering, indicate a company transforming into a sustainable enterprise. However, Durov’s legal issues could play a crucial role in determining whether Telegram will emerge as a leading tech IPO or a cautionary tale regarding platform oversight in an encrypted landscape.