Telegram CEO Pavel Durov took to the stage at Blockchain Life 2025 in Dubai on Wednesday to announce **Cocoon**, a decentralized AI compute network built on The Open Network (TON) blockchain. Cocoon will pay GPU owners in Toncoin for powering private AI inference, marking a significant step forward in decentralized artificial intelligence infrastructure.
Formally known as the **Confidential Compute Open Network**, Cocoon is set to launch in November, with Telegram as its first major customer. Following the announcement, applications for GPU providers and developers opened immediately.
### How Cocoon Works
Cocoon creates a marketplace where individuals contribute computing power through their graphics processing units (GPUs) and, in return, receive TON cryptocurrency. On the flip side, developers gain access to low-cost AI infrastructure that processes queries without exposing user data to centralized providers.
This decentralized approach to AI infrastructure aims to rival the monopolies held by Big Tech giants like Amazon AWS and Microsoft Azure. Pavel Durov positioned Cocoon as a response to the erosion of digital freedoms—continuing Telegram and TON blockchain’s long-standing privacy-first mission.
### Privacy at the Core
With rising concerns about centralized AI systems, many users worry about companies like OpenAI or Google accessing sensitive details—their prompts, data, usage patterns, and metadata—whenever they interact with AI. Cocoon counters these concerns by employing a confidential computing approach, keeping data encrypted throughout the entire process—even from the GPU owners performing the computations.
### Telegram Integration and Scale
Telegram’s globally adopted platform provides immediate scale for Cocoon’s adoption. The messaging app will integrate Cocoon across its ecosystem, powering AI features in its Mini Apps and potentially transforming how millions of users interact with artificial intelligence every day.
Max Crown, CEO of the TON Foundation, emphasized the importance of this development, saying:
> “Leveraging Telegram’s billion-strong user base and TON’s high-performance, scalable blockchain technology, Cocoon has the potential to redefine how billions interact with AI in their everyday digital lives. Cocoon is the convergence of social networking, AI, and decentralized technology at unprecedented scale.”
### Strategic Investment and Technology
AlphaTON Capital, a Nasdaq-listed digital asset infrastructure and TON treasury company, announced plans to make a **substantial investment** in the hardware needed to support the Cocoon network. The company aims to deploy next-generation, high-memory GPU models across strategic data centers, supporting advanced AI model architectures including DeepSeek and Qwen.
Cocoon builds on TON blockchain’s multi-chain architecture, which processes millions of transactions per second through its sharded design. This structure enables Cocoon to handle massive AI workloads while maintaining transparency and market-driven pricing enabled by blockchain technology.
### The Growing Decentralized AI Ecosystem
Decentralized AI networks are gaining momentum as alternatives to centralized tech giants. Projects like Akash Network and Render Network already allow users to rent distributed computing resources. However, Cocoon’s integration with Telegram’s massive user base offers a unique advantage in scale and reach.
Like other decentralized cloud and storage networks, Cocoon’s market pricing will be driven by supply and demand dynamics. GPU owners and developers will negotiate costs through the network, potentially offering more competitive pricing than traditional centralized cloud providers. However, this model may introduce variability in service reliability and consistency.
### Empowering Users
Max Crown summed up Cocoon’s mission:
> “In a world where centralized AI systems harvest data and concentrate power, Cocoon rebalances the equation by giving users control over their computation, privacy, and ownership.”
With Cocoon, Telegram and TON are set to pioneer an open, user-driven compute economy that puts control back into the hands of the users, reshaping the future of AI infrastructure and digital privacy.
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