Elon Musk’s xAI is launching a new ambitious partnership with Telegram. And it might change the future of their large language model.

What’s happening:

  • Telegram and Elon Musk’s xAI have formed a new partnership to integrate xAI’s large language model Grok directly into the Telegram app

By the numbers:

  • xAI will pay Telegram $300M USD through a mixture of cash and equity as part of the new partnership
  • Telegram currently has more than 1B users globally
  • Telegram will also earn 50% of any revenue from Grok subscriptions that are generated from Telegram users

Why it matters:

  • This is the first deal xAI has ever done with a large mobile app to directly integrate Grok and make it available for free to all existing users

Going deeper:

  • Grok will be able to quickly answer questions for Telegram users as well as providing short summaries of large messages and files that are shared within Telegram

Market reaction:

  • Telegram’s token TON surged +18% following the announcement