OpenAI Challengers Test Appetite for China AI With Twin IPOs

Core Insights - Two of China's largest generative AI startups, Zhipu and MiniMax, are debuting in Hong Kong, testing investor appetite for the AI industry post-ChatGPT [1][2] - Zhipu and MiniMax have different approaches to the public markets, with Zhipu being more traditional and government-backed, while MiniMax operates like a Silicon Valley startup [2][3] Company Overview - Zhipu, founded by professors from Tsinghua University, has a strong focus on serving domestic institutions and has over 8,000 institutional clients [3][4] - MiniMax, a younger startup, aims to compete with DeepSeek and OpenAI by offering consumer chatbots, supported by Alibaba and Abu Dhabi's sovereign wealth fund [3][4] Financial Performance - In 2024, Zhipu recorded revenue of 312.4 million yuan ($44.7 million), surpassing MiniMax's revenue of $30.5 million [5] - Both companies' revenues are significantly lower than industry leaders OpenAI and Anthropic, which have estimated revenues of $13 billion and $9 billion, respectively [5] Market Context - The listings of Zhipu and MiniMax reflect a policy-driven capital cycle in China, with increased investment in indigenous semiconductor and AI supply chains [5] - There is strong investor interest in AI, as indicated by recent share-price gains in GPU and AI listings across A-share and Hong Kong markets [5]