Chinese AI debuts show growing pains

The article reports that Zhipu AI and MiniMax saw large share gains after Hong Kong listings, but companies are facing rising losses and constraints from US export controls on advanced AI chips.

Investor interest in Chinese AI companies has surged after recent Hong Kong listings. The article mentions Zhipu AI and MiniMax posted large share gains following their debuts. It also reports that many firms are recording rising losses and facing higher computing costs. Observers cited US export controls and questions over monetisation as central challenges. Reported facts: - The article mentions Zhipu AI's shares rose significantly and MiniMax also saw strong gains after their Hong Kong IPOs. - The article reports companies are logging increasing losses and spending heavily on training new AI models and other costs, according to analysts cited. - The article notes US export restrictions bar the most advanced energy-efficient AI chips, and analysts said using domestic chipsets can require two to four times more compute to train models. - The article reports Beijing announced plans to deploy three to five general-purpose large AI models in manufacturing by 2027 and to strengthen supplies of computing power. Summary: Chinese AI firms have attracted investor interest through recent IPOs but face structural pressures from rising costs, restricted access to advanced chips and unsettled monetisation prospects. Analysts cited 2026 as a pivotal year for testing profitability, and the government has announced industrial deployment plans through 2027.