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05/29/2025

Telegram Raises $1.5B, Partners with Elon Musk's xAI, and Posts Strong Profit Growth

On May 29, encrypted messaging app Telegram was reportedly preparing to issue bonds to raise at least $1.5 billion. The company also reached a preliminary agreement with xAI — Elon Musk's artificial intelligence company — to integrate the Grok AI chatbot into its platform. These moves not only strengthen Telegram's financial position but also open up an entirely new revenue stream from AI. $1.5B Bond Issuance to Restructure Finances According to sources familiar with the matter, Telegram will issue

Telegram Raises $1.5B, Partners with Elon Musk's xAI, and Posts Strong Profit Growth

On May 29, encrypted messaging app Telegram was reportedly preparing to issue bonds to raise at least $1.5 billion. The company also reached a preliminary agreement with xAI — Elon Musk's artificial intelligence company — to integrate the Grok AI chatbot into its platform. These moves not only strengthen Telegram's financial position but also open up an entirely new revenue stream from AI.

$1.5B Bond Issuance to Restructure Finances

According to sources familiar with the matter, Telegram will issue 5-year bonds at a 9% yield, with the goal of buying back the bond tranche issued in 2021 that matures in March 2026. The company has already repurchased approximately $400 million of those bonds in cash.

Existing investors such as BlackRock (US) and Mubadala (Abu Dhabi's sovereign wealth fund) are expected to participate again, while new names like Citadel (the US hedge fund) may also come on board.

As with previous issuances, bondholders will have the option to convert their bonds into equity at a discount if Telegram goes public. However, given the legal uncertainty surrounding founder Pavel Durov, the prospect of a near-term IPO remains an open question.

The xAI Partnership: Cash, Equity, and Revenue Sharing

In another notable strategic move, founder Pavel Durov revealed that Telegram has reached a preliminary partnership agreement with Elon Musk's xAI, valued at approximately $300 million. Under the deal, Telegram will integrate the Grok chatbot into its messaging platform for one year and in return will receive:

  • A cash payment worth hundreds of millions of dollars
  • An equity stake in xAI
  • 50% of revenue from Grok subscriptions sold directly through Telegram

Durov also emphasized that user privacy will be protected, and xAI will only be able to access data that users voluntarily share with Grok.

However, Elon Musk subsequently denied that a deal had been formally signed, causing the price of TON — the native token of The Open Network (TON) ecosystem — to dip slightly after surging 23% to nearly $3.70.

Explosive Growth Despite Legal Risks

Despite founder Pavel Durov facing an investigation in France on allegations of non-cooperation in a criminal case, Telegram's business has continued to grow impressively.

  • 2024 Revenue: $1.4 billion, with estimated profit of $540 million
  • Comparison: In 2023, the company posted just $342 million in revenue and a $173 million loss
  • Monthly Active Users: 1 billion
  • Paid Users: Over 15 million, double the figure from the prior year
  • 2025 Forecast: Revenue of $2 billion, profit exceeding $700 million

Conclusion

Telegram is executing a series of strategic moves — from refinancing its debt through bond issuances and expanding revenue via an AI partnership, to sustaining strong user and profit growth. Despite lingering legal uncertainty, the company continues to demonstrate its ability to weather turbulence and cement its position as one of the world's leading messaging platforms in the Web3 and AI era.