According to sources, Chinese startup MiniMax, which develops AI solutions like Microsoft-backed OpenAI’s ChatGPT, is close to completing a $250 million fundraising valued at approximately $1.2 billion.
The deal comes amid a global AI craze started by ChatGPT that has expanded to China, boosting artificial intelligence stocks and spurring domestic businesses like Alibaba (9988. HK), Huawei (HWT.UL), and Baidu (9888. HK) to introduce competing products.
Two people, speaking anonymously, said MiniMax’s current fundraising attracted new investors like a Tencent-affiliated organization.
MiniMax and Tencent (0700. HK) declined to comment to Reuters.
Two others said Yan Junjie, SenseTime’s former vice president, established MiniMax in 2021.
Its fundraising shows investor interest in what may be China’s OpenAI, even as venture capital investment in the nation is under pressure due to a shaky economic recovery and U.S. chip export curbs.
Chinese regulators have advocated greater regulation of the rising popular technology, with some investors and advisers forecasting major transaction activity in the country’s broader AI-generated content sector in the second half of this year.
New firms led by famous entrepreneurs like MiniMax are joining huge tech corporations in developing their own AI models.
Meituan co-founder Wang Huiwen launched Beijing Lightyear Technology with $50 million from investors.
Kai-Fu Lee, the former Google China CEO, launched Project AI 2.0. Wang Xiaochuan, founder of China’s No. 2 search engine Sogou, created Baichuan Intelligence with $50 million in April.
The two other persons said miHoYo, the maker of the hit game “Genshin Impact,” funded MiniMax’s startup.
The venture capital funds’ announcements list China’s Yunqi Partners and Future Capital as early investors.
MiHoYo declined Reuters’ request for comment.
MiniMax’s Glow software lets users create virtual characters, give them backgrounds, and communicate with them about love advice and hair loss. MiniMax’s AI model can also handle many tasks.
Charlie Chai, an 86Research analyst, praised MiniMax’s technology.
“Kingsoft Cloud Group is working with MiniMax and Baidu’s ERNIE Bot for office productivity use cases.” Chai claimed the response favors MiniMax.
“Of course, it was early-stage development,” he said, “but the remarks surprised me since I held Baidu in high regard.”
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