Z.ai and MiniMax, two Chinese AI pioneers that went public in Hong Kong in January, are following divergent financial paths after their first-half earnings: Beijing-based Z.ai (also known as Zhipu AI) reported a near 400% year-on-year revenue surge and strong model performance, while Shanghai rival MiniMax posted sizable top-line growth but faces scepticism over technical benchmarks and its growth projections.
Z.ai’s revenue surge and ARR
Z.ai on Monday reported first-half revenue of 953.9 million yuan (US$142 million), a nearly 400% increase year on year. During an earnings call, co-founder and chief scientist Tang Jie said the company’s annual recurring revenue (ARR) had reached US$1.6 billion based on August’s results.
MiniMax growth figures and calculation method
MiniMax’s financial report released last week showed revenue growth of 283% to US$116.6 million for the first half. Founder and CEO Yan Junjie said MiniMax’s ARR had reached US$800 million in August, about half that of Z.ai. Yan later acknowledged in a private post-earnings call that MiniMax had calculated the ARR figure by taking revenue from a single week in August and multiplying it by 52, according to a person familiar with the matter.
Market response has split: Z.ai has won support from some analysts on the back of surging revenue and what was described as top-tier model performance, while MiniMax faces mounting scepticism over lagging technical benchmarks and questions about its growth projections. Both companies had pitched investors on capturing the explosive demand for artificial intelligence at home and abroad when they listed in Hong Kong in January.
