Shanghai-based AI startup MiniMax, along with Zhipu AI, has seen rapid share growth following their Hong Kong IPOs, reflecting heightened investor confidence in the Chinese AI sector. Despite this optimistic outlook, challenges persist, including US export controls and the struggle for profitability. Both companies are part of a new generation of “AI tigers” influenced by the success of the low-cost, open-source AI model from DeepSeek. However, Zhipu AI’s co-founder cautions that the technological gap with US firms may be widening. US sanctions hinder access to advanced microchips, raising operational costs and limiting profit margins. Analysts predict a crucial test for AI companies in 2026 as they seek sustainable revenue streams. China’s government is heavily investing in AI innovation, targeting key sectors like finance and healthcare, aiming to establish itself as a global AI leader, potentially making the AI large language model market worth $14.5 billion by 2030.
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