Telegram Secures AI Deal, Plans $1.5 Billion Bond Raise
Telegram to raise $1.5 billion through bond issuance, shortly after landing a major artificial intelligence partnership that brought in $300 million. The funding comes as the company deepens its links with xAI, the AI firm founded by Elon Musk.
Image 1: Telegram (Source: Unsplash)
AI Integration Boosts Telegram’s Finances
The partnership between Telegram and xAI will see Grok, an advanced chatbot developed by xAI, integrated throughout the Telegram platform. This agreement is expected to last one year and will make the chatbot available to the messaging service’s user base, which now exceeds one billion globally. Telegram’s founder, Pavel Durov, explained that the company received $300 million in cash and equity as part of the deal. Telegram to raise with $1.5B Bond Plan After Securing AI Deal with Elon Musk’s xAI.
In addition to the upfront capital, it will receive half the revenue from any Grok subscriptions purchased through its app. The AI tool is set to introduce a wide range of features to Telegram, such as summarising chats and documents, editing messages, moderating group conversations, and offering inbox support tools. Users will be able to access these features directly through the Telegram interface.
Durov has stated that user privacy will remain a priority. He noted that Telegram’s encrypted chat function, which protects messages through end-to-end encryption, will not be affected by the integration of the chatbot. Furthermore, data shared by Telegram users will not be used to develop or train the AI.
Bonds to Refinance Debt and Support Growth
Following this AI agreement, it now plans to raise an additional $1.5 billion by issuing bonds with a five-year term. These new bonds are expected to offer investors a 9% return per year. The proceeds will be used partly to repurchase earlier bonds, including $400 million already bought back from a 2021 issue.
Institutional interest in Telegram appears strong. Reports suggest that major investors such as Citadel, BlackRock, and Mubadala — the Abu Dhabi-owned investment company — are backing the new round of bonds. This support reflects growing confidence in Telegram’s efforts to expand beyond messaging and into areas like AI and digital payments.
Image 2: Pavel Durov (Source: Financial Times)
TON Network Expands as Crypto Gains Momentum
The TON Foundation, which manages the development of the TON blockchain, has also taken steps to scale up its payments infrastructure. It recently appointed Nikola Plecas, a former Visa executive, as vice president of payments. This hiring signals the foundation’s intention to extend the reach of Toncoin as a digital payment method.
Telegram made Toncoin its exclusive cryptocurrency for app services earlier this year. This move has tightened the link between the app and the blockchain network. In March, several prominent venture capital firms — including Sequoia Capital, Ribbit Capital, and Benchmark — invested a combined $400 million in Toncoin, reinforcing the token’s credibility.
The foundation aims to turn Toncoin into a widely accepted currency within Telegram and possibly beyond. With Telegram’s user base growing and the platform rolling out AI and crypto features, the ecosystem appears to be taking shape.
Meanwhile, the price of Toncoin, the digital asset tied to the Telegram-affiliated TON blockchain, saw a sharp increase following the xAI news and the bond plans. The token rose more than 20%, with market activity fuelled by a string of announcements related to the platform’s future.
Read Also: Meta’s AI Falls Short of True Intelligence, Says Yann LeCun
Although Telegram is advancing quickly in the tech space, its founder has not avoided controversy. In 2024, Durov faced legal issues in France, where he was arrested over allegations involving illegal activities on the platform. He was charged with several offences and placed under supervision, but left the country in early 2025. Despite this, the company has continued to operate and attract investment.
