The price of Toncoin (TON), the cryptocurrency associated with The Open Network, experienced a significant increase of over 13% on Wednesday, fueled by news of a notable partnership between Telegram and Elon Musk’s xAI.
According to a report from CNBC, Musk’s startup is set to pay Telegram $300 million to launch its Grok artificial intelligence (AI) chatbot on the messaging platform.
Elon Musk’s xAI And Telegram Team Up
Telegram CEO Pavel Durov announced the partnership in a post, highlighting that the deal not only includes the substantial upfront payment but also allows Telegram to share in 50% of the revenue generated from xAI subscriptions sold through its platform, aiming to enhance Telegram’s financial stability while providing users with access to cutting-edge AI technology.
However, Musk later tweeted that “no deal has been signed,” leaving some uncertainty regarding the specifics of the agreement.
Pavel Durov, optimistic about the partnership between the two parties, mentioned that messaging plattform’s users could expect access to superior artificial intelligence capabilities this summer.
The announcement comes as Telegram celebrates surpassing one billion monthly users in 2025 and prepares for a substantial bond issue expected to raise at least $1.5 billion, according to The Wall Street Journal.
The platform has gained popularity in regions such as Russia and Ukraine, where it is frequently utilized by government officials and military personnel.
Legal Issues Loom Over Durov
Despite these advancements, Durov faces legal challenges in France, where he is being investigated for allegedly facilitating criminal activities, including drug trafficking and fraud, on Telegram.
Following his arrest in August, he has been restricted from leaving the country without permission. In response to these allegations, Telegram asserted that it complies with European Union laws and stated that Durov has “nothing to hide.”
In March, Musk announced that xAI merged with his social media platform X, valuing the AI company at $80 billion and X at $33 billion. However, the Grok chatbot recently faced criticism after it generated “inappropriate responses” regarding sensitive topics, which xAI attributed to an “unauthorized modification.” The company has since committed to improving Grok’s reliability and transparency.
Toncoin Price Surges
As of this writing, the Toncoin price has risen from $2.97 to as high as $3.69, the first time it has reached such heights in over a month. However, despite this bullish news, the price of the token has retraced back to $3.40.
This puts the Toncoin price 58% below its all-time high (ATH) of $8.25, which was reached in June 2024. Looking ahead, the token may face resistance in breaking out of its current consolidation phase at $3.50.
Conversely, investors should watch the $2.90 level, as it could prevent a steeper drop toward the yearly low of $2.30, reached in mid-March.
Featured image from DALL-E, chart from TradingView.com