Chinese AI startup MiniMax shares surge 90% in Hong Kong IPO, outpacing rival Zhipu debut

MiniMax, an AI startup from China, experienced a remarkable surge of up to 90% on its inaugural trading day in Hong Kong, marking a significant milestone for the company. This development positions MiniMax as the second major Chinese developer of large language models to enter the public market. The startup successfully raised HK$4.8 billion (approximately $620 million) during its initial public offering. In contrast, local competitor Zhipu AI, which debuted just a day earlier, saw a more modest increase of 13% on its first trading day. As of the latest trading updates, MiniMax shares were valued at HK$290.8 each, a notable rise from the initial offer price of HK$165. Both MiniMax and Zhipu AI are part of China's burgeoning group of 'AI tigers,' companies focused on developing large language models intended to compete with established American firms like OpenAI. Founded in 2021 and supported by industry giants Alibaba Group and Tencent Holdings, MiniMax specializes in various AI applications, including chatbots, image generation, and video synthesis. The funds raised from the IPO will be allocated towards enhancing research and development efforts. This launch comes at a critical time as Chinese AI companies intensify their fundraising activities to stay competitive against their U.S. counterparts, particularly amid ongoing export restrictions from Washington concerning advanced chips essential for AI training in China.