Alibaba (BABA) Backed MiniMax Planning IPO

Alibaba Group Holding Limited (NYSE:BABA) is one of Goldman Sachs’ top Chinese stock picks. On June 18, reports emerged indicating that one of the artificial intelligence startups the tech giant backs is planning to go public. MiniMax is a Shanghai-based AI startup that has already hired financial advisers for an IPO. It plans to go public this year in a deal that could value it at $3 billion.

Alibaba (BABA) Backed MiniMax Planning IPO

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The IPO would allow people to invest in a new generation firm advancing AI technology. The Alibaba-backed startup has already released an A1 reasoning model called M1 that is less resource-consuming than DeepSeek’s latest model. The Chinese startup has also upgraded a text-to-video model, integrated into its video editor, Hailuo AI.

MiniMax raised $600 million in a financing round valued at $2.5 billion last year. Alibaba was one of the companies that led the $600 million financing round. Tencent is another tech giant that has also invested in MiniMax.

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese technology company focusing on e-commerce, retail, the Internet, and technology. It facilitates business-to-business (B2B) sales through platforms like Alibaba.com, connecting suppliers with businesses worldwide. It also offers various digital services, including cloud computing, logistics, and digital media.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.