(Yicai) Dec. 22 -- Chinese startup MiniMax could become the quickest artificial intelligence company to complete an initial public offering after its establishment in the world, taking it just over four years.

MiniMax unveiled its prospectus yesterday after passing its listing hearing at the Hong Kong Stock Exchange on Dec. 17. Set up in December 2021, the Shaignah-based company is scheduled to start trading shares next month after the upcoming holiday period ends.

MiniMax's net loss widened to USD465 million from USD1.5 million last year from the previous year, while its revenue surged 782 percent to USD30.5 million, according to its prospectus. It has accumulated losses of USD1.3 billion over the past four years.

MiniMax's losses are because of significant initial investments in large language model research and development, AI infrastructure, and fair value losses on financial liabilities, the firm said, adding that its annual loss will significantly expand this year, mainly due to expected R&D costs.

High growth, high investment, and high losses are some of the main characteristics of AI companies. The prospectuses of MiniMax and Zhipu AI, another Chinese firm that recently cleared its Hong Kong IPO hearing, show that their revenue keeps doubling, commercialization is accelerating, and the actual usage volume and willingness to pay are expanding, but the fierce competition and rapid technological upgrading in the sector have led to continued burning through cash.

MiniMax estimated that its monthly spending in cash was on average around USD280 million over the past year. Its cash balance stood at almost USD1.1 billion as of Sept. 30, including USD360 million in cash and cash equivalents.

MiniMax's primary monetization methods are subscription services, in-app purchases based on tokens, online marketing services, and enterprise-level Application Programming Interface services charged based on usage.

Early participants in MiniMax's fundraisers include Yunqi Capital, International Data Group, GL Ventures, Future Capital, and miHoYo, while Tencent Investment and Alibaba Group Holding took part in its Series A and B financing rounds. The company raised about USD390 million from its latest fundraisers in August, with its valuation exceeding USD4.2 billion.

Alibaba, miHoYo, IDG, and Tencent are the controlling shareholders of MiniMax, according to its prospectus. Alibaba owns a 13.7 percent stake, miHoYo 6.4 percent, and Tencent 2.6 percent.

The global LLM market continues to rapidly develop and will likely exceed USD300 billion by 2030, according to International Data Corporation. AI will contribute USD19.9 trillion to the global economy by 2030, driving a 3.5 percent increase in global gross domestic product that year.

Editor: Martin Kadiev