Alibaba Group Holding Ltd. leads a financing round in progress, for Chinese AI startup MiniMax, aiming to raise at least $600 million that would lead to valuation at over $2 billion.
- Investor Participation: Other investors, including HongShan (formerly Sequoia China), have committed to the financing. MiniMax’s existing backers include Tencent Holdings Ltd., IDG Capital, and Hillhouse.
- Strategic Investment: Alibaba’s investment in MiniMax would mark its second major deal in the AI space in 2024, following its leadership in Moonshot AI’s $1 billion funding round in February, reflecting Alibaba’s commitment to investing in innovative startups and exploring emerging technologies.
- Generative AI Focus: MiniMax, founded by veterans of computer-vision specialist SenseTime Group Inc., specializes in developing generative AI technologies similar to ChatGPT. Alibaba’s backing brings MiniMax into the spotlight and helps establish its credibility in the AI market.
- Strategic Focus: In addition to investing in AI, Alibaba is restructuring its business to spur independent business lines, particularly in cloud and logistics. The company aims to integrate AI across its operations, leveraging its cloud infrastructure and in-house AI models.
The investment in MiniMax signifies Alibaba’s commitment to fostering innovation and driving advancements in the AI sector, aligning with broader industry trends towards technological development and AI-driven solutions.
