MiniMax, a Shanghai-based AI startup, is reportedly planning to pursue an initial public offering (IPO) in Hong Kong, according to sources familiar with the situation.

The company, valued at around US$3 billion, has engaged financial advisers for the potential listing, which may occur later this year.

Discussions about the IPO are ongoing, and details regarding timing and valuation may change.

MiniMax has not publicly commented on these reports.

MiniMax’s potential IPO would represent a notable development for Chinese AI companies, which face competition from both domestic firms and global leaders like OpenAI.

Founded in 2021, MiniMax raised US$600 million in 2023, achieving a valuation of US$2.5 billion at that time. This funding round was led by Alibaba Group, with previous investments from Tencent Holdings.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Hong Kong emerges as strategic IPO destination amid US-China tensions

MiniMax choosing Hong Kong for its potential IPO reflects a broader shift in Chinese tech listing preferences driven by geopolitical realities.

Chinese companies historically favored US markets for their higher valuations and liquidity, with sixteen Chinese firms raising $3.4 billion on US exchanges in a single year (2017), more than double the previous year’s total 1.

However, the collapse of Chinese cross-border listings in the US during 2011-2012 resulted in over 100 companies being delisted and more than $40 billion in market value evaporating, largely due to accounting scandals and regulatory conflicts 2.

Hong Kong has actively reformed its listing rules to become more attractive to tech companies, including allowing dual-class shares that give founders greater control, directly competing with New York’s traditional advantages 1.

For AI companies like MiniMax that require substantial capital for development but operate in a sensitive technology sector, Hong Kong offers a pragmatic middle ground: access to international capital without the intensifying regulatory scrutiny Chinese companies face in US markets.

2️⃣ China’s “AI Dragons” race for capital to fuel rapid development

MiniMax’s IPO pursuit highlights the intense capital needs of Chinese AI startups competing in a rapidly evolving market.

The company raised $600 million last year at a $2.5 billion valuation with backing from tech giants Alibaba and Tencent, who are strategically investing in multiple AI startups simultaneously 3.

MiniMax reportedly generates approximately $70 million in annual revenue from its AI products including the Talkie companion app and Hailuo AI video editor, suggesting significant ongoing investment is required to sustain growth 4.

Chinese AI startups are optimizing algorithms to overcome US chip restrictions, with MiniMax specifically claiming its M1 reasoning model is less resource-consuming than competitors’ offerings 3.

The broader trend shows multiple Chinese AI firms, including Zhipu (valued at $2.7 billion with 25 million ChatGLM users), pursuing IPOs to secure the substantial funding needed for AI research and product development in an increasingly competitive landscape 4.

These capital-intensive requirements explain why even well-funded startups with substantial backing from tech giants are turning to public markets to fuel their ambitious growth plans and compete with both domestic rivals and international leaders like OpenAI.

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