Decentralized AI Network Cocoon Takes on Major Cloud Providers with a Privacy-Centric Approach

Telegram CEO Pavel Durov has revealed Cocoon, a decentralized AI computing platform built atop the

blockchain, during his keynote address at the Blockchain Life 2025 event in Dubai, as reported by .

Cocoon serves as a decentralized marketplace, enabling users to earn TON tokens by sharing their idle GPU resources for computational tasks. This setup empowers developers to run AI operations without handing user data to centralized entities, directly addressing privacy concerns in AI, according to

. The platform utilizes TON’s scalable, sharded blockchain to efficiently process large-scale AI tasks, while offering transparent and flexible pricing that adjusts with market supply and demand, as noted by .

With over a billion users, Telegram plans to embed Cocoon into its ecosystem, powering AI-driven features in Mini Apps and bots starting November 2025. Decrypt further highlighted that Cocoon’s confidential computing encrypts all user prompts, data, and metadata throughout processing, ensuring privacy even from those providing GPU power. This approach reflects Telegram’s ongoing dedication to digital privacy, a principle Durov emphasized while criticizing the loss of privacy in centralized platforms, as covered by The Outpost.

The initiative has attracted major support, including a "significant investment" from

Capital, a TON treasury company listed on Nasdaq. Decrypt mentioned that AlphaTON intends to deploy advanced, high-memory GPUs in key data centers to support sophisticated AI models such as DeepSeek and Qwen. This infrastructure is designed to rival centralized cloud providers like AWS and Azure, which Durov described as monopolies threatening digital independence, a sentiment echoed by Coinotag.

Cocoon’s decentralized approach introduces a dynamic pricing model based on supply and demand, potentially offering developers more affordable options than conventional cloud services. However, this model also brings questions about service consistency compared to centralized solutions, as The Outpost pointed out. Cocoon joins a growing list of decentralized computing projects like Akash Network and Render Network, but stands out due to Telegram’s vast user base and TON’s scalability, according to Decrypt’s analysis.

Max Crown, CEO of the TON Foundation, described Cocoon as a "move toward an open, user-centric computing economy," highlighting its potential to transform AI experiences for billions, as Decrypt reported. Durov, meanwhile, sees the project as part of Telegram’s shift from a messaging app to a broader decentralized infrastructure, reflecting his skepticism toward centralized systems, from fiat money to AI—a transition covered by

.

Cocoon’s debut comes amid increasing scrutiny of centralized AI platforms, where companies like OpenAI and Google maintain access to user data. By encrypting information end-to-end, Cocoon seeks to return control over computation and privacy to users, as Coinotag observed. Its integration with Telegram could speed up adoption, especially as AI becomes more embedded in daily digital life, a trend discussed by Decrypt.

Some critics argue that decentralized networks may struggle with consistent performance and security. Still, supporters believe Cocoon’s model could democratize AI access and cut costs by as much as 50% compared to centralized clouds, according to Coinotag’s review of similar projects.

Applications for GPU providers and developers opened right after the announcement, with a public beta scheduled for November 2025, as reported by

. As Cocoon expands, its future will rely on attracting developer demand and maintaining the reliability of its decentralized framework.

At present, Cocoon stands as a bold challenge to the dominance of major tech firms in AI, supported by Telegram’s global presence and TON’s blockchain technology. Whether it can fulfill its promise of a privacy-focused, user-empowered AI ecosystem remains to be seen.

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