According to sources, Chinese firm MiniMax, which develops AI solutions like Microsoft-backed OpenAI’s ChatGPT, is close to obtaining $250 million to value it at $1.2 billion.
The deal comes amid a global AI boom started by ChatGPT that has expanded to China, boosting AI stocks and forcing domestic businesses like Alibaba (9988. HK), Huawei (HWT.UL), and Baidu (9888. HK) to introduce competing products.
Two anonymous sources said MiniMax’s fundraising attracted new investors, including a Tencent-affiliated firm. Reuters received no comment from MiniMax or Tencent (0700. HK).
Two former SenseTime (0020. HK) employees, including Yan Junjie, created MiniMax in 2021.
Even as China’s venture capital investment confronts constraints from a wobbling economic recovery and U.S. chip export regulations, its financing shows investor enthusiasm for what may be China’s OpenAI.
Some investors and advisers expect significant deal activity in China’s AI-generated content business in the second half of this year as regulators suggest stronger regulation of the popular technology. Big tech giants and emerging businesses led by entrepreneurs like MiniMax are investing heavily in AI model development.
Wang Huiwen, the co-founder of Meituan (3690. HK), launched Beijing Lightyear Technology, an AI business, with $50 million from investors.
Project AI 2.0, Kai-Fu Lee’s latest startup, was announced. In April, Wang Xiaochuan, founder of China’s No.2 search engine Sogou, announced that he had created Baichuan Intelligence with $50 million.
The two other persons said miHoYo, maker of the hit game “Genshin Impact,” funded MiniMax’s startup. According to venture capital funds, China’s Yunqi Partners and Future Capital were early investors. Reuters received no comment from MiHoYo.
Glow, MiniMax’s software, lets users create virtual characters, give them backgrounds, and speak about love advice and hair loss. MiniMax’s AI model solves several jobs. 86 Research analyst Charlie Chai praised MiniMax’s technology.
MiniMax and Baidu’s ERNIE Bot are helping Kingsoft Cloud Group with office productivity. “MiniMax is winning,” Chai remarked. “Of course, it was early-stage development, but the remarks surprised me since I held Baidu in high regard.”
