MiniMax, a Chinese AI startup, is seeking funding of at least $600 million, with Alibaba Group Holding Ltd. leading the round.
Leading its second significant acquisition in the sector this year, Alibaba is investing in growth.
According to people familiar with the subject, the two-year-old company has raised money from Alibaba and other investors at a valuation of more than $2.5 billion. The fundraising effort is still ongoing, but Alibaba and HongShan—formerly Sequoia China—have pledged to provide the funding, according to one of the individuals—who wished to remain anonymous—discussing a confidential agreement. According to the person, talks with more investors are still underway, so the parameters of the deal could yet alter.
Alibaba has made significant investments in generative AI, the technology that underpins ChatGPT, joining other Silicon Valley heavyweights, including Microsoft Corp. It just led a $1 billion fundraising round for Moonshot AI, increasing the startup's worth to roughly $2.5 billion, according to Bloomberg News. Moonshot AI has been around for a year. The following agreements demonstrate Alibaba's willingness to wager on possible future leaders in artificial intelligence, even if they don't always align: MiniMax is a rival to Moonshot in the development of ChatGPT-like services. It was formed by former employees of computer vision specialist SenseTime Group, Inc.
Alibaba is now looking to expand. Prior to a government crackdown that started in 2020, Alibaba was one of China's most active tech investors. The company's sagging performance is being examined by new chief executives Joseph Tsai and Eddie Wu in an effort to turn it around after two years of regulatory scrutiny and a downturn in the economy.
