{
  "id": 16560130,
  "title": "Why is MiniMax stock sliding today?",
  "url": "https://urgent.news/2026/10/26/why-is-minimax-stock-sliding-today",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T04:34:29.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/why-is-minimax-stock-sliding-today-93CH-4971381"
  },
  "original_language": "en",
  "account": "MiniMax Group Inc.'s stock is plunging nearly 9.8% to HK$169.2 today, following concerns over a new AI model dubbed M3.1 Flash. The company's AI model generated scrutiny due to its high hallucination rate, raising doubts about the model's quality. This decline in MiniMax's stock follows a broader downturn in Hong Kong's top AI model stocks, with Zhipu AI also down over 5%. Investors are questioning whether the spending on AI models is sustainable and the frequency of major updates by Chinese developers, who face intense competition from U.S. rivals. MiniMax had not launched a new flagship text model in more than four months since the release of M3, despite the newer model promising to cut usage costs by 70%. However, the drop in MiniMax's stock has pushed shares below their Hong Kong IPO price, marking a decline from their March peak as competition over model pricing intensifies and a broader technology selloff continues.",
  "summary": null,
  "key_points": [
    "MiniMax stock drops 9.8% to HK$169.2 amid concerns over M3.1 Flash AI model",
    "High hallucination rate in M3.1 Flash raises doubts about model quality",
    "Broader downturn in Hong Kong AI stocks, including Zhipu AI, over 5%"
  ],
  "editors_take": "Technical flaws in the new M3.1 Flash model signal growing investor skepticism regarding the long-term sustainability and quality of rapid AI development cycles amidst intense global competition.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}