Elon Musk Says No Deal 'Signed' After Telegram CEO Announces $300 Million Partnership With xAI - Palantir Technologies (NASDAQ:PLTR)

Telegram CEO Pavel Durov revealed a partnership with Elon Musk‘s xAI, which will see the integration of the Grok AI chatbot into the messaging platform.

What Happened: Durov disclosed on Wednesday that xAI, a startup by Musk, will pay Telegram $300 million for the integration of its Grok AI chatbot, CNBC reported. This partnership, according to Durov, will significantly bolster Telegram’s financial standing.

As part of the agreement, Telegram will also receive 50% of the revenue generated from xAI subscriptions sold on its platform. The implementation of the Grok AI technology is expected to be available to Telegram users this summer.

Despite the announcement, Musk later stated on X that “No deal has been signed,” to which Durov responded, “True. Agreed in principle, but formalities are pending.”

This development follows the March merger of Musk’s xAI with X, which valued the AI company at $80 billion and the social media platform at $33 billion.

Meanwhile, Telegram, the Dubai-based messaging platform, recently crossed one billion monthly users and plans to raise at least $1.5 billion through a bond issuance. The app enjoys significant popularity in countries like Russia and Ukraine, where it is extensively used by government officials and military personnel.

Why It Matters: The integration of the Grok AI chatbot into Telegram is a significant move in the AI industry. This development follows Musk’s addition of Grok to Palantir’s PLTR AIP platform in February, further solidifying the chatbot’s presence in the tech industry.

Meanwhile, the use of Musk’s AI technology in government agencies, as reported in May, has raised concerns about potential breaches of privacy laws and conflicts of interest. On the other hand, Rep. Marjorie Taylor Greene (R-Ga.) has criticized Elon Musk's AI chatbot, Grok, alleging that it spreads "fake news and propaganda."