Telegram CEO Pavel Durov announced Cocoon at Blockchain Life 2025 in Dubai, introducing a decentralized AI compute network built on The Open Network blockchain. The platform, formally called the Confidential Compute Open Network, will compensate GPU owners in TON for providing private AI inference capabilities.
The network launches in November with Telegram serving as its first major customer. Applications for GPU providers and developers opened immediately following Wednesday's announcement. Cocoon creates a marketplace where individuals contribute computing power through graphics processing units and receive cryptocurrency in exchange.
Developers gain access to low-cost AI infrastructure that processes queries without exposing user data to centralized providers. The confidential computing approach keeps information encrypted throughout the process, even from GPU owners performing the actual computation. Durov positioned the project as a response to eroding digital freedoms over the past two decades.
Vision and Potential Impact
Max Crown, CEO of the TON Foundation, described the launch as a shift toward an open, user-driven compute economy. "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," Crown stated in a press release.
The timing aligns with growing concerns about centralized AI systems operated by companies like OpenAI and Google. These platforms observe all user prompts, data, patterns, and metadata during query processing. Cocoon's architecture challenges the monopoly held by Big Tech corporations, including Amazon's AWS and Microsoft Azure.
Infrastructure and Investment
AlphaTON Capital, a Nasdaq-listed digital asset infrastructure and TON treasury company, announced substantial investment plans for network hardware. The company intends to deploy next-generation, high-memory GPU models across strategic data centers, supporting advanced model architectures including DeepSeek and Qwen.
Integration and Market Position
Telegram will integrate Cocoon across its ecosystem, powering AI features in Mini Apps and potentially transforming how users interact with artificial intelligence daily. The messaging app's globally adopted platform provides immediate scale for the decentralized network. Projects like Akash Network and Render Network already allow users to rent distributed computing resources, though Cocoon's integration with Telegram's massive user base distinguishes it from competitors.
Security and Decentralization Benefits
David Holtzman, chief strategy officer of the Naoris decentralized security protocol, explained that centralizing artificial intelligence creates risks such as data breaches and hacks. Storing vast quantities of user data on centralized servers makes information attractive targets for malicious actors.
The project builds on TON blockchain's multi-chain architecture, which processes millions of transactions per second through its sharded design. Market pricing will emerge from supply and demand dynamics as GPU owners and developers negotiate costs through the network. Crown emphasized that Cocoon rebalances the equation by giving users control over their computation, privacy, and ownership in a world where centralized AI systems harvest data and concentrate power.