MiniMax Raises $2B Amid Stock Slide
Chinese artificial intelligence company MiniMax has launched a $2 billion fundraising plan just days after the expiration of its post-IPO lock-up period triggered a sharp decline in its share price. The company aims to raise about HK$14.5 billion through a combination of new share placements and convertible bonds to finance AI infrastructure and frontier model development. Consequently, investors reacted cautiously, sending the stock down as concerns over dilution added to existing selling pressure.
MiniMax plans to raise approximately HK$9.54 billion through the sale of 35.6 million new shares offered at a discount to the previous closing price. In addition, the company will issue HK$6.5 billion in zero-coupon convertible bonds that can later convert into equity at a premium. Management said the proceeds will strengthen computing infrastructure, expand research and development, and support the company’s long-term artificial intelligence strategy.
Lock-Up Expiry Weighs on Investor Sentiment
The fundraising announcement arrived shortly after the company’s six-month IPO lock-up period expired, allowing early investors to sell previously restricted shares. Therefore, MiniMax experienced heavy selling pressure even before announcing the capital raise.
The additional issuance of shares and convertible bonds further increased investor concerns about equity dilution. As a result, MiniMax shares dropped sharply and underperformed the broader Hang Seng Tech Index despite continued optimism surrounding China’s AI sector. Analysts expect market sentiment to remain cautious until the company demonstrates stronger user growth and revenue expansion.
Capital Will Fund Next-Generation AI Development
MiniMax intends to use the new capital to accelerate development of its frontier AI models and expand its computing capacity. The company recently introduced MiniMax-M3, an open-source large language model featuring 427 billion parameters and a context window of up to one million tokens. Furthermore, the model incorporates the company’s MiniMax Sparse Attention technology, which improves inference efficiency and reduces memory requirements.
The fundraising also reflects the escalating investment race among Chinese AI developers. Companies including DeepSeek and Zhipu AI have secured multibillion-dollar funding rounds as demand for computing infrastructure continues to rise. Consequently, MiniMax is seeking additional resources to remain competitive in the rapidly evolving AI market.
CEO Reinforces Long-Term AI Commitment
Alongside the fundraising, MiniMax founder and CEO Yan Junjie announced that he will forgo his salary until the company achieves artificial general intelligence (AGI). Moreover, he pledged to transfer part of his personal shareholding to support employee incentives and open-source developer initiatives. The announcement aims to reinforce confidence in the company’s long-term vision despite recent market volatility.
Although the share price has come under pressure, MiniMax continues investing aggressively in AI research, infrastructure, and open-source technologies. As competition intensifies across the global AI industry, the company believes its expanded capital base will strengthen its ability to develop next-generation foundation models and enterprise AI platforms.
