Messaging app users to receive Grok, an AI tool, through partnership between Telegram and Musk's xAI company.
In a significant move to bolster its presence in the AI market, Elon Musk's startup, xAI, has agreed to pay Telegram $300 million to deploy its advanced AI chatbot, Grok, on the popular messaging app. The deal, spanning a year, will see Telegram receive the sum in both cash and equity, with an additional 50% stake in any subscription revenue generated through the platform as per Telegram founder Pavel Durov's Wednesday post on X.
The partnership, if solidified, could provide xAI with a golden opportunity to tap into Telegram's over one billion users, thereby enhancing its competitive edge in the AI sector. Meanwhile, the substantial investment in Telegram could bolster its financial position, enabling it to expand and develop AI-related services further.
The AI market may witness increased competition, and potential growth as both companies may be induced to innovate. Conversely, the arrangement could set a potentially lucrative precedent for AI companies, encouraging them to explore similar partnerships with popular platforms.
Data handling practices, a considerable concern in AI integrations, may draw added attention given Telegram's emphasis on user privacy. XAI's acquisition of X earlier in the year, which valued social media platform X at $33 billion, also raises questions about the potential use of user data collected from Telegram for training AI models.
However, neither company responded to queries regarding the partnership's details or data handling methods. xAI, over the course of this year, has entered several strategic alliances to bolster its presence in AI infrastructure and financial services.
The strategic alliance between xAI and Telegram, while in principle, awaits final documentation according to Musk's clarification. Subject to successful completion and implementation, the collaboration could drive significant innovation and AI adoption, potentially shaping business models in the AI sector.
The strategic alliance between Elon Musk's startup, xAI, and Telegram could stimulate innovation in investing in AI-related services, as both companies may be motivated to explore advanced technology and artificial intelligence. With the potential integration of Grok on Telegram, xAI might leverage its presence on a platform with over one billion users, thereby bolstering its business and financial position.
