Core Viewpoint - MiniMax is set to acquire Shenzhen-based AI video generation startup Lu Ying Technology (Avolution.ai), aiming for technology complementarity and market expansion in the competitive AI landscape [1][2]. Summary by Sections Acquisition Details - Lu Ying Technology, founded in September 2023, specializes in AI video generation with its core product, YoYo, targeting the anime creator market [1]. - The company has developed the LCM (Latent Consistency Model) visual model, which enhances video generation efficiency and content consistency [2]. - The acquisition is seen as a strategic move for MiniMax to enhance its capabilities in video generation and to compete against larger firms like Baidu and Alibaba [2]. Company Background - Lu Ying Technology's CEO, Huang Zhaoyang, has a strong academic background, having previously worked at SenseTime and NVIDIA [1]. - The company raised approximately 100 million RMB in its angel round financing but faced challenges in securing further funding in 2024 [1]. Market Context - The AI industry in China is experiencing accelerated consolidation, with many startups opting for acquisition due to funding difficulties and commercialization challenges [3]. - Examples include Bian Sai Technology, which was acquired by Ant Group after facing commercialization bottlenecks, and BoFeng Intelligent, which was acquired by OPPO [3][4]. Internal Adjustments at MiniMax - MiniMax is undergoing internal changes, including the departure of key executives and a rebranding of its core product from "Hai Luo AI" to "MiniMax" [5][6]. - The company aims to streamline its brand recognition and enhance its global positioning through these adjustments [6]. Competitive Positioning - MiniMax is noted for its advanced multi-modal model technology, which has achieved breakthroughs in text, visual, and video generation, positioning it favorably in the market [6][7]. - The company has also seen success in international markets, with its product "Talkie" reportedly generating close to tens of millions of dollars in revenue last year [7].