Alibaba's investment in MiniMax brings the startup out of relative secrecy and helps establish its credentials in the AI field. This move is part of Alibaba's strategy to invest in potential future leaders in artificial intelligence. The company is also working on a multi-way split to spur independent business lines from cloud to logistics, and is trying to revive its cloud business and integrate AI across its sprawling business.
Key takeaways:
- Alibaba Group Holding Ltd. is leading a financing round of at least $600 million for Chinese AI startup MiniMax, marking its second major deal in the AI space this year.
- The two-year-old firm has secured funds from Alibaba and other investors at a valuation of more than $2.5 billion.
- Alibaba's new chiefs, Joseph Tsai and Eddie Wu, are exploring options to turn around the company after two years of regulatory scrutiny.
- Alibaba is also orchestrating a multi-way split intended to spur independent business lines from cloud to logistics, with a focus on integrating AI and its in-house model — Tongyi Qianwen — across its business.