Chinese artificial intelligence startup MiniMax is preparing for a major public debut in Hong Kong, with Alibaba Group Holding Ltd. and Abu Dhabi Investment Authority (ADIA) set to anchor the offering, reported Bloomberg, citing people familiar with the matter.
The deal positions MiniMax at the forefront of a closely watched race among China’s generative AI firms to reach public markets, even as concerns persist over profitability and heavy investment costs.
Cornerstone backing and IPO plans
MiniMax is seeking to raise more than $600 million from its initial public offering, the report said.
The company is expected to begin taking investor orders as early as Wednesday, ahead of a potential January listing in Hong Kong.
The size and timing of the offering may still change as discussions continue.
In addition to Alibaba and ADIA, other cornerstone investors are expected to include IDG Capital, Perseverance Asset Management, and South Korea’s Mirae Asset, according to the sources.
Such backing from established global investors is likely to lend credibility to the transaction at a time when scrutiny of AI valuations is intensifying.
The planned share sale comes amid a year-end surge in Hong Kong listings.
IPO proceeds in the city are set to reach a four-year high, with December marking the busiest month for new listings since 2019, as 25 companies debuted shares.
A survivor of China’s AI price war
MiniMax has emerged as one of the survivors of an intense competition in China’s generative AI sector, often referred to as the “Battle of One Hundred Models.”
The phrase reflects a crowded field of startups racing to develop large language models and AI applications, frequently undercutting each other on price to gain market share.
The company is now in a heated contest to become the first domestic generative AI startup in China to go public.
Its IPO pitch is aimed at investors seeking exposure to China’s fast-evolving AI industry, as MiniMax looks to raise capital to compete with US leaders such as OpenAI.
However, questions remain about the sector’s financial sustainability.
MiniMax generated $30.5 million in revenue last year, according to available data, a modest figure compared with OpenAI’s projected $13 billion in revenue for 2025.
Like their US counterparts, Chinese AI startups face concerns about heavy spending on infrastructure and research without clear near-term paths to profitability.
Global momentum despite profitability concerns
Despite these challenges, global investors and technology companies continue to pour money into artificial intelligence, betting on its long-term strategic importance.
This week, Meta Platforms Inc. agreed to acquire Manus, a Singapore-based AI agent with Chinese roots, in a deal valuing the company at more than $2 billion, underscoring sustained appetite for AI assets.
MiniMax’s offering also comes as rivals push ahead with their own listings.
On Tuesday, Knowledge Atlas Technology Joint Stock Co., better known as Zhipu AI, sought to raise HK$4.3 billion ($552 million) from its Hong Kong IPO.
Together, these deals highlight Hong Kong’s growing role as a key fundraising venue for Chinese technology firms.
For MiniMax, the IPO represents both an opportunity to secure capital for expansion and a test of whether investors are willing to back AI growth stories amid rising competition and uncertain profitability.
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