Elon Musk Denies Signed xAI Deal with Telegram, TON Token Slumps

Elon Musk, CEO of xAI, denied on Wednesday evening that a formal agreement had been signed between xAI and Telegram, contradicting earlier claims made by Telegram founder Pavel Durov. The news triggered a sharp pullback in TON (TON), the cryptocurrency linked to Telegram.

Earlier in the day, Durov had announced a partnership with xAI to integrate Elon Musk’s AI assistant, Grok, into Telegram’s platform. The proposed deal included Telegram receiving 50% of revenue from xAI subscriptions sold via its app, plus a $300 million cash and equity investment. This move was part of Telegram’s efforts to raise $1.5 billion in a bond issuance backed by major financial players like BlackRock, Mubadala, and Citadel, as reported by CoinDesk.

Durov’s tweet read:

“This summer, Telegram users will gain access to the best AI technology on the market. @elonmusk and I have agreed to a 1-year partnership to bring xAI’s @grok to our billion+ users and integrate it across all Telegram apps 🤝”

However, Musk responded shortly after, stating:

“No deal has been signed.”

In response, TON’s price fell from $3.60 to $3.28, erasing much of the token’s gains following the initial announcement, when it had surged 14%.

Durov later clarified on X:

“Agreed in principle, but formalities are pending.”

This back-and-forth has created uncertainty around the partnership and left TON investors cautious as they await further developments.