Breaking: Alibaba Invests in another Chinese AI Startup

Alibaba is leading the round of at least $600 million for MiniMax.

Hey Everyone,

On the success of Microsoft’s commercial partnership with OpenAI, in early 2024 several companies are doubling down on their approach to integrate Generative AI. In recent times Apple and Alibaba seem to be hitting this the hardest.

In particular I’m watching how companies like Nvidia and Alibaba are leading in how they invest in AI startups.

From Jane Zhang out of Bloomberg News, we hear today that Alibaba Group Holding Ltd. is leading a financing round of at least $600 million for Chinese AI startup MiniMax, spearheading its second major deal in the space this year as it deploys capital in pursuit of growth.

As an AI startups watcher and analyst, I’ve always been under the assumption that China would be fertile grounds for Generative AI startups that eventually do get impressive funding and this seems to be playing out in real-time in 2024. Even as China faces a generational exodus of foreign investment.

There is now a growing pantheon of Generative AI foundational startups in China. Most of them you might never have heard of. So what do we even know about this deal and MiniMax?