Chinese AI Startup MiniMax Eyes $600M IPO Backed by Alibaba and Abu Dhabi

MiniMax is no longer just another AI startup. It’s preparing for a public debut.

The Chinese AI company is targeting a $600 million IPO with backing from Alibaba and Abu Dhabi investment authorities, according to people familiar with the matter. The final size and timing of the offering could still change.

According to a report by The Business Times, sources familiar with the situation said the Chinese startup recently secured a deal with the investment authority of Abu Dhabi and Alibaba. The sources declined to reveal their names to The Business Times due to the matter’s private nature.

Key details from the deal

The AI startup is expected to raise more than that amount, with more backers potentially coming in as time goes on, the report further revealed. Investors’ orders are expected to begin on Dec. 31, as the company’s anticipated IPO draws nearer in January.

As one of the few survivors of the “Battle of One Hundred Models” price wars in China, this startup is determined to become one of the first domestic Chinese AI startups to go public.

Alibaba and the Abu Dhabi investment authorities aren’t the only ones in this deal. The unnamed individuals also stated that Perseverance Asset Management, IDG Capital, and Mirae Asset, a South Korean financial services firm, will be part of the important investors expected to back MiniMax.

With more investors coming into the picture, the final amount of the deal and its timing may change, the report revealed.

Chinese vs US AI startup race

There are still questions about sustainability. Many Chinese AI startups, including MiniMax, struggle to match the output of larger companies that are rapidly expanding their capabilities.

OpenAI, for instance, is on track to generate $13 billion in annual revenue, which significantly exceeds MiniMax’s $30.5 million revenue from last year.

We’ve seen a lot of money flow into AI startups this year, with China and the US as direct competitors. The Chinese seem to be more focused on AI affordability as a competitive advantage, while US AI companies are also striving to improve their models to retain the lead.

Already, several moves have been made by tech giants like Meta to acquire smaller AI startups and even bring in AI experts to their team. Meta’s recent acquisition is a $2 billion deal of a Singaporean-based AI company founded in China.

What it looks like for Asian AI startups

The $600 million listing is part of a broader four-year rush by Hong Kong-based startups to reach IPO in December. 

In the coming years, we expect AI companies to be among the most valuable, topping conventional software and automotive companies, especially in Asian regions.

For more on how massive capital is reshaping the AI landscape, check out eWeek’s coverage of SoftBank’s completed $40 billion investment in OpenAI.
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