Contents

45 / 153

Video Models, by Company

MiniMax (Hailuo)

Chapter 44

5 min read

Updated 2026.08.11 · detail
01

The Shanghai upstart

MiniMax is a Chinese AI company headquartered in Shanghai that has built a reputation for producing remarkably efficient and high-quality video models on a fraction of the budgets of the larger labs. The company was founded in 2021, and Hailuo (the name means 'sea snail' in Chinese, which is suitable for a model that creates flowing, naturalistic motion) is their video generation product line.

Hailuo's first version was launched in 2024 and quickly gained a following because of its image-to-video quality and its surprisingly low cost. By late 2024, it was already one of the most popular video models on Western aggregator platforms like Krea. The Hailuo team is small relative to its competitors but has shown an unusual focus on architectural efficiency, they get more quality per parameter and per training dollar than almost anybody else in the field.

02

Architecture: NCR and the efficiency push

Hailuo 02, released in 2025, introduced an architecture that MiniMax calls Noise-aware Compute Redistribution, or NCR. The basic insight is similar to Wan's Mixture of Experts approach: different stages of the diffusion process require different kinds of computation, so you can save compute by allocating it asymmetrically. NCR redistributes computational resources across the noise levels of the diffusion process, spending more compute on the parts where it matters most and less on the parts where the model is just refining details that are already mostly correct.

The result, according to MiniMax, is 2.5x training and inference efficiency improvements compared to conventional architectures at similar parameter scales. They used this efficiency gain to expand the model to three times the parameter count of its predecessor and train on four times the data, all without proportional cost increases. Hailuo 02 generates videos at up to 1080p with up to 10 seconds duration.

03

Hailuo versions

Hailuo 01 (2024)

The original release. Strong image-to-video, competitive pricing, popular on Krea and similar platforms. Set the template for what Hailuo would become.

Hailuo 02 (mid-2025)

The architectural breakthrough release with NCR. Major quality upgrade and improved economics. Ranked second globally on the Artificial Analysis video benchmark, behind Seedance 1.0 from ByteDance and ahead of Veo 3. This was when Hailuo went from being 'the cheap alternative' to being a serious competitor on quality grounds.

Hailuo 2.3 (early 2026)

The current flagship. Continued improvements in physical realism, motion stability, and stylization handling (anime, illustration, ink wash painting, game CG). MiniMax positions it as the cost-effectiveness leader in the field, comparable quality to the more expensive Western models at significantly lower per-generation cost.

Hailuo's strategic value to the field is that it puts price pressure on all the other video models. When you can get Hailuo-quality results at $0.05 to $0.10 per second of video, the labs charging $0.50 to $1.50 per second have to justify the gap. For many use cases, exploration, ideation, prototyping, social content, Hailuo is the obvious choice. For finished work where the quality difference matters, the more expensive models still have an edge.

04

Where Hailuo fits in 2026

Hailuo's role in the field is less about topping a leaderboard than about setting the price floor. When a small Shanghai lab can deliver near-frontier motion quality at a fraction of the cost of Veo or Sora-class output, it forces every other provider to justify a premium. MiniMax's efficiency work, the Noise-aware Compute Redistribution architecture described above, is what lets a lab with a modest compute budget stay in that conversation at all.

05

Strengths, weaknesses, and one lawsuit

Hailuo's real strengths are believable physical motion, unusually granular director-style camera control through natural-language cues, and a price low enough that high-volume creators adopted it in bulk. An early Hailuo 02 build genuinely reached second globally on the Artificial Analysis video arena in mid-2025, which was a real high-water mark. The weaknesses are the mirror image: clips run short, roughly six to ten seconds, MiniMax discloses almost nothing technical about the video models, and by mid-2026 the frontier had moved past it, with the arena topped by Google, ByteDance, Alibaba, and Kling and no Hailuo model in the top ranks. The mid-2025 number two standing is stale, and quoting it today would be wrong.

06

Getting the best out of Hailuo

Access is through the Hailuo web app and the iOS and Android apps, plus the MiniMax platform API, and it is widely resold through aggregators like fal. Models come in Pro, Standard, and Fast tiers, so the practical habit is to iterate on the cheap Fast tier and switch to Pro only for finals. The signature feature is the reason to use it: put the camera direction in brackets, along the lines of [pan right], [zoom in], or [tracking shot], describe the motion and physics explicitly, and keep to one clear action per short clip given the length limit. It is strongest for physics-driven realistic motion, image-to-video animation, and stylized or anime content at high volume, and weakest for long-form work, guaranteed provenance, or top-of-leaderboard photorealism where the 2026 leaders now sit.

Check your understanding

pass: 5 of 7

Answer at least 5 of 7 correctly to unlock the next chapter.

  1. 1. Where is MiniMax headquartered and what is its reputation?

  2. 2. What is the architectural insight behind Hailuo 02's Noise-aware Compute Redistribution (NCR)?

  3. 3. What efficiency improvement does MiniMax claim NCR delivers?

  4. 4. Where did Hailuo 02 rank on the Artificial Analysis video benchmark?

  5. 5. How does MiniMax position Hailuo 2.3, the early-2026 flagship?

  6. 6. What is Hailuo's strategic value to the broader field?

  7. 7. How does MiniMax manage to compete with much larger labs on quality?

The weekly briefing

Get the week's moves in your inbox.

A short, sourced digest of what actually moved across generative AI, every week. Free.

Free. One email a week, no spam, unsubscribe anytime. Prefer a reader? RSS.