Tech billionaire Elon Musk has denied any formal partnership with Telegram on integrating Grok AI chatbot on the messaging platform. As a result, Telegram CEO Pavel Durov’s claims, of a $300 million cash-and-equity deal with xAI, seem to have fallen flat. Toncoin (TON) seems to be quickly losing steam after 12% gains on Wednesday.
Elon Musk Denies Signing Telegram Deal
On May 28, Pavel Durov announced that his firm will integrate the Grok AI Chatbot, developed by Elon Musk’s xAI, into its social platform as part of a revenue-sharing partnership. The deal includes a $300 million cash-and-equity package, along with 50% of xAI subscription sales generated through Telegram.
But responding to Durov’s post on the X platform, Musk wrote: “No deal has been signed”. This led the community to explode over what is actually happening. Moments later, Durov also agreed to Musk’s statement, adding: “True. Agreed in principle, but formalities are pending”.
Well, Durov has kept his yesterday’s post as it is, which highlights that the deal could be proceeding as per his plans. Telegram is making bold moves and recently raised $1.5 billion from BlackRock through bond issuance.
The firm plans to use the proceeds from the issuance to repurchase the remaining debt from its 2021 bond issuance, which is scheduled to mature in March 2024. Additionally, Durov has confirmed that his lockdown in France would be ending soon, and he would be returning to Dubai next week.
Soon after the announcement by Durov yesterday, Toncoin (TON), a cryptocurrency having past links to Telegram, surged 15%, shooting to $3.70. The TON daily trading volume has skyrocketed by 300%, crossing more than $1.1 billion. As per CoinGape’s TON price prediction, the altcoin is likely to trade around $3.6 over the next month.
Musk Departs from DOGE
Earlier today, Elon Musk also announced his departure from the Department of Government Efficiency (DOGE), however, he said that the department will continue to function ahead. Musk wrote:
“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending. The DOGE mission will only strengthen over time as it becomes a way of life throughout the government”.
There were rumors that the departure was due to fallout with President Donald Trump. However, Musk was a special government employee, a designation that allows individuals to perform limited-term duties for the government. Under this status, special government employees are permitted to serve up to 130 days. Notably, Musk’s 130-day tenure began on January 20 and is set to conclude on May 30, falling on a Friday this year.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
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