MiniMax's Hailuo-02 challenges Google Veo, delivering cinematic AI video at breakthrough prices.

A new contender has emerged in the rapidly evolving field of AI video generation, challenging the dominance of established tech giants. Shanghai-based AI company MiniMax has launched Hailuo-02, the second iteration of its video model, which is reportedly outperforming Google's Veo 3 in user benchmarks while offering significantly more competitive pricing.[1] This development underscores the increasing competition and rapid innovation within the generative AI space, signaling that high-performance models are no longer the exclusive domain of major U.S. technology firms.

Hailuo-02 has made a notable entrance, securing the #2 global rank on the Artificial Analysis benchmark for cinematic AI video, placing it ahead of Google's Veo 3 and just behind Seedance 1.0.[2] The model is lauded for its cinematic realism, delivering high-fidelity 1080p video with impressive frame consistency and a sophisticated understanding of environmental physics like water and light effects.[2] A key differentiator for Hailuo-02 is its "Director Control Toolkit," which allows users to simulate real cinematography with prompts for camera movements like "pan-down" and "dolly zoom," offering a level of creative control that users have found compelling.[2][3] In direct comparisons, users have noted that while Veo excels in motion fluidity and lighting, Hailuo-02 often produces more cinematic emotion and realism.[4]

One of the most significant advantages Hailuo-02 holds over its competitors is its aggressive and accessible pricing structure. While access to Google's Veo 3 has been tied to premium subscriptions, initially costing as much as $249 per month for the Google AI Ultra plan, Hailuo-02's pricing is considerably lower.[5][6] MiniMax offers several subscription tiers for its Hailuo AI platform, with a standard plan priced at $14.90 per month, which includes 1,000 credits for video generation.[7] For users with greater needs, Pro and Master plans are available at $54.99 and $119.99 per month, respectively, offering more credits and features.[7] Furthermore, pay-as-you-go options are available, with a 6-second, 1080p video costing around $0.49 and a 10-second, 768p clip priced at approximately $0.56.[3] This pricing strategy makes high-quality AI video generation more accessible to a broader range of creators and businesses.

MiniMax, founded in 2021, has quickly established itself as a major player in China's AI scene, earning the moniker of an "AI Tiger" from investors.[8] The company is backed by prominent investors, including Alibaba Group and Tencent, and reached a valuation of over $2.5 billion in a March 2024 funding round led by Alibaba.[8][9] MiniMax's portfolio extends beyond video generation, encompassing large language models like the ABAB 6.5 series, multimodal models, and text-to-speech technology.[8][10] The development of Hailuo-02, codenamed "Kangaroo," involved a revamped motion-planning core that enables more seamless camera transitions and realistic physics, contributing to its high benchmark rankings.[2][3] The model is capable of generating 1080p videos up to 6 seconds long and 768p videos up to 10 seconds long, from either text or image prompts.[11][12][3]

The emergence of a powerful and cost-effective model like Hailuo-02 from a Chinese company has significant implications for the global AI industry. It signals a shift in the competitive landscape, where innovation is accelerating globally. The year 2024 saw significant advancements in AI video generation, with models like OpenAI's Sora and Google's Veo 2 pushing the boundaries of realism and control.[13][14] However, the high cost of these models remained a barrier for many. MiniMax's strategy of combining high performance with affordability could pressure other major players to reconsider their pricing models and democratize access to these powerful creative tools. The competition is no longer just about technical prowess but also about accessibility and value, a trend that is likely to benefit creators and accelerate the adoption of AI in video production worldwide.