Elon Musk Denies $300M Deal with Telegram’s xAI Partnership

Pavel Durov, Telegram’s CEO, announced a partnership with xAI on May 28, 2025, which Elon Musk later denied.

The contradiction between Durov and Musk has led to significant market confusion and impacted cryptocurrency prices.

Elon Musk Disputes $300 Million xAI Agreement

Telegram CEO Pavel Durov announced a $300 million agreement with xAI to integrate Grok chatbot into Telegram. Elon Musk, xAI’s founder, refuted the announcement, insisting “no deal has been signed.”

The announcement suggested a one-year agreement with revenue sharing, but Musk’s contradiction has left the terms uncertain. Formal contracts have not been finalized, according to the parties involved.

Market Reacts Negatively to Uncertainty in Deal

The conflicting reports have pressured TON (Toncoin), reacting negatively to the uncertainty. Investors and users are seeking clarity. The discrepancy impacts both companies’ reputations and market standings.

Financial arrangements involving $300 million in cash and equity now remain questionable. The market’s indecision highlights the potential volatility arising from unverified partnership announcements.

Lessons from Historical AI Integration Challenges

Similar AI integrations have historically faced challenges. Microsoft’s Copilot on Telegram succeeded without financial disputes, highlighting the importance of clear communications and finalized agreements.

Potential outcomes may include delayed negotiations or price recovery, paralleling past technology partnership clarifications. Experts note that consumer trust hinges on transparent contract communications. Pavel Durov expressed, “The agreement was agreed in principle, but formalities are pending.”