Forget DeepSeek. China’s already released 5 new AI models and UBS prefers this one
As speculation surrounding a new version of the DeepSeek AI model continues to grow, several Chinese tech companies have recently unveiled their own generative artificial intelligence models. This article explores the latest developments in China’s AI landscape, focusing on the models released by major players and highlighting UBS’s preference for one particular model.
Recent AI Model Releases in China
In the past few weeks, a wave of generative AI models has emerged from Chinese tech giants. Notable releases include:
- Alibaba’s Qwen 3.5: Aimed at enhancing text generation capabilities.
- ByteDance’s Seedance 2.0: A model focused on video generation.
- MiniMax’s M2.5: Launched in mid-February, this model has garnered significant attention for its competitive performance and pricing.
- Zhipu’s GLM 5.0: This model emphasizes coding capabilities.
- Moonshot’s Kimi 2.5: A privately held model that also focuses on coding and task completion.
UBS’s Preference for MiniMax
Among these new entrants, UBS analysts have expressed a strong preference for MiniMax, which went public in Hong Kong in January. The company’s M2.5 model is noted for its performance, rivaling Claude’s latest Opus 4.6, but at a significantly lower price point. According to a mid-February report, MiniMax’s AI usage had already reached one-third of Anthropic’s Claude, despite being priced at one-tenth of Claude’s cost.
UBS has initiated coverage of MiniMax with a buy rating and a price target of 1000 Hong Kong dollars (approximately $127.83), indicating a potential upside of over 30% from its trading price of HKD763.50.
Competitive Advantages of MiniMax
What sets MiniMax apart from its competitors is its comprehensive suite of AI tools. These tools not only excel in text generation but also offer capabilities in video generation, audio generation similar to ElevenLabs, and AI companionship. This diverse functionality positions MiniMax favorably in the rapidly evolving AI market.
In contrast, Zhipu’s GLM 5.0 model is primarily focused on coding, while Moonshot’s Kimi 2.5 model is still privately held and has a narrower focus on coding and task completion rather than audiovisual generation.
The Impact of the Lunar New Year
The anticipation surrounding a new DeepSeek model peaked during the nine-day Lunar New Year holiday, which concluded on February 23. Last year’s model release during this period surprised global markets, showcasing China’s advanced generative AI capabilities despite U.S. chip restrictions.
This year, major Chinese internet companies such as Tencent, Alibaba, Baidu, and ByteDance leveraged the Lunar New Year to engage local consumers, shifting the AI race towards user applications. These companies invested heavily in integrating their AI models with existing applications and services, particularly in e-commerce, and spent substantial amounts on promotional activities.
Future Prospects for MiniMax
According to UBS estimates, MiniMax could capture up to 3% of the global market for enterprise services, translating to potential segment revenue of $41 billion. The company could see significant revenue opportunities in video generation (approximately $5 billion) and AI companionship (around $4 billion).
As new AI models continue to disrupt existing market rankings, users are likely to gravitate towards tools that are both cheaper and smarter. If MiniMax’s leadership in AI grows faster than anticipated, UBS analysts predict the stock could rise to at least 1380 HKD.
Conclusion
In summary, the release of new AI models in China, particularly MiniMax’s M2.5, has captured the attention of analysts and users alike. With its competitive pricing and diverse functionalities, MiniMax is poised to make significant strides in the global AI market. The ongoing developments in this sector suggest a dynamic future for both Chinese tech companies and the broader AI landscape.
Frequently Asked Questions
MiniMax’s M2.5 model is a generative AI model that offers competitive performance in text and video generation, audio generation, and AI companionship, making it a versatile tool for developers.
MiniMax’s M2.5 model is noted for its performance at a significantly lower price compared to DeepSeek’s current V3.2 model, attracting a growing number of developers.
UBS analysts estimate that MiniMax could capture 3% of the global enterprise services market, with potential revenues reaching $41 billion, driven by its diverse AI capabilities.
Note: The information provided in this article is based on recent reports and market analysis as of March 2026.
