MiniMax secures $2 billion, with its CEO opting to waive their salary until the achievement of AGI.

      The letter resembles a declaration of beliefs from a founder, while the share sale associated with it tells a more difficult narrative. The founder of MiniMax has informed employees that he will not take a salary until the Chinese AI company achieves artificial general intelligence (AGI). On the same day, MiniMax sought to raise up to $2 billion from investors. Since March, its shares have dropped by approximately 80%.

      Yan Junjie, who serves as chief executive, chairman, and chief technology officer, communicated this commitment in an internal memo last Friday. The South China Morning Post accessed the message, which was subsequently shared in full on X by a company executive. In the memo, Yan stated, “Effective today, and until the day we achieve AGI, I will no longer accept any salary from the company.” He asserts his internal signature as “IO.”

      Yan's commitment goes beyond a simple salary reduction. Over a four-year period, he pledged to distribute shares equivalent to 4% of the company from his personal holdings to reward employees. An additional 1% will fund open-source projects. The letter concludes with the declaration, “We will keep going until we get there.”

      The gesture itself is inspirational and primarily symbolic. A founder’s wealth resides in equity, not in a regular paycheck. Foregoing his salary costs Yan little, but giving away 5% of his stake represents a more substantial commitment and serves as a retention strategy at a time when Chinese AI talent is facing aggressive recruitment.

      The memo's timing is significant. It coincided with a major discounted fundraising effort, a move typically made by companies in need of cash to stabilize investor sentiment. The optimism is directed inwardly toward staff who are observing the declining share price.

      However, the financial realities tell a different story. MiniMax is issuing 35.6 million new shares at HK$268 each, totaling around $1.2 billion, at a nearly 10% discount to the previous closing price, according to Bloomberg. This is being paired with HK$6.5 billion in zero-coupon convertible bonds maturing in 2027, arranged by Morgan Stanley and UBS.

      The stock price dropped nearly 10% on Friday. The new shares dilute the float that had recently expanded following the expiration of a six-month lock-up period for initial investors. For retail investors who purchased shares at a higher price, this move is painful.

      The decline in stock value can be traced back to MiniMax’s January listing in Hong Kong, as it sought a second listing in Shanghai. However, the anticipated successes did not materialize. The flagship M3, launched in early June, struggled to attract developers. Soon after its release, the company halved the price of its top model, a decision seen as a sign of weakness rather than strategic thinking.

      Competitors seized the opportunity. Models from Zhipu, DeepSeek, and Moonshot AI have drawn attention away from MiniMax. Consequently, the company continues to build ambitious open models, yet its pricing power is diminishing in an already competitive market embroiled in a fierce price war.

      This fundraising effort does not occur in isolation. Numerous Chinese tech companies are seeking AI investments. Zhipu raised $4 billion this week, marking one of the largest share sales in Hong Kong this year. Even as investors penalize underperforming companies, there remains a desire for exposure to Chinese AI. Not all sentiment is negative.

      Goldman Sachs expressed a more optimistic outlook on Friday, describing the valuation as appealing and the business model as cost-effective. Thus, the real challenge lies not in the salary or the rhetoric, but in whether the $2 billion raised will provide MiniMax the necessary time to deliver a product that developers will choose, before another Chinese competitor overtakes it.

      While the letter assures a commitment to pursuing AGI, the market is posing a more immediate question: what have you accomplished recently?