Telegram is no longer the Privacy First Chat app for Crypto Bros. A dramatic one-two punch, Elon Musk’s $300 million alliance with Xai, and a $1.5 billion high-yield bond raise, Telegram has moved from the rebel platform to the profit engine.
After Durov confirmed the collaboration, Ton jumped 15%.
But its future, including IPO prospects, remains hostage in legal entanglements in French courts.
Musk’s Grok returns to exclusive home on Telegram for price
In the headline grabbing move, Telegram announced an exclusive distribution agreement with Xai, which will embed Grok, Musk’s LLM chatbot, into the platform for a year. Terms: Xai pays $300 million in cash and 50% of all Grok-related subscription revenue generated through Equity and Telegram.
“Together, we win ❤️📈🏆,” CEO Pavel Durov celebrated what he was framed as the moment he defined the platform. The move marks the first major monetization of Telegram, one billion active users (MAUS) active users (MAUS) for monthly active users (MAUS), historically a sharp pivot from donation and debt-fueled businesses.
Durov argues that Grok integration does not compromise user data. “Grok training will not provide telegram data,” he writes. The deal is ahead of Telegram over rivals like WhatsApp and Snapchat, who have struggled to extract revenue from AI capabilities within the messaging ecosystem.
From cash burns to cash flow: A surprising spike in profits
Telegram also disclosed its first profit in 2024 with revenue of $540 million and $1.4 billion. The figures show a dramatic shift from past years when the company was operating at a sudden loss. With organic growth of 15 million paying users and 2.5 million users per day, revenues are projected to be $2 billion in 2025, with profits exceeding $700 million.
For investors, the metric ultimately examines Telegram’s long-standing monetization model.
In addition to announcing the AI deal, Telegram has completed an over-bond bond of $1.5 billion with key backers, including BlackRock, Citadel and Mubadala, with a 9% yield. The five-year paper refinance obligation from the 2021 convertor will include conversion sweeteners associated with the IPO and is an implicit bet that Telegram will be published before 2030.
The bond success has surprised some market watchers, especially given CEO Durov’s continued legal entanglement. However, investors seem willing to be willing to price that risk as noise to the economics and growth profile of Telegram’s units.
Paris Issues: Legal Cloud on Durov is looming large
Despite the operational momentum, a huge cloud is looming over the Telegram outlook. The arrest of France’s founder Pavel Durov in August 2024 and 12 preliminary charges, including the arrest of 12 French contributors and subsequent non-cooperation in child safety investigations.
Doloff is under judicial supervision and is forbidden from leaving France. The May 12 court ruling blocked his planned trip to the US to meet investors. “We complied with all binding legal requirements we received,” Doloff told WSJ. “Up to this day, we don’t understand what was wrong.”
Legal lawsuits can delay or derail IPO ambitions, raise governance concerns, and complicate global platform operations. It also highlights a broader regulatory question regarding end-to-end encryption app provider debt.
IPO or bridge? The Grok and Bond deals are really signalling
Is the telegram now on the glide pass to the IPO? Probably not necessarily. The bond conversion feature suggests that at least the options are alive and alive. However, some analysts argue that high-yield pay increases are even bridges and hedges. This is a way to lock up growth without scrutiny of the public market while Durov navigates his legal dangers.
One year of GROK integration also has open questions. Do AI subs stick? Can Xai be delivered? Do regulators scrutinize the data layer despite Durov’s guarantees? And what will happen to the $300 million promise if the mask stumble?
Still, with that platform pivot, Telegram deleted the image of the burning money outliers. Whether it becomes a public high-tech titan or a warning story can depend as much on court outcomes as it matches the product market.
Telegram Timeline
August 24, 2024: Arrested for Paris Matter 19 in 2025 Doloff: Telegram Hit 1B Mouse My 12, 2025: French courts announced in 2025 Durov US Trip May 28: Zai – Telegram Groke Agreement: 9% Bond Price $1.5 billion
Conclusion
Marked by AI monetization and bold debt hikes, Telegram’s summer surge shows companies evolving into sustainable businesses. But Durov’s legal cloud may prove the ultimate variable: whether Telegram has become the next great tech IPO or a warning story for platform governance in the crypto era.
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