TuSimple Rebrands as CreateAI, Shifts Focus to AI Animation

TuSimple Rebrands as CreateAI, Fully Shifting Focus to AI Animation and Gaming

TuSimple has finalized its strategic transition, moving completely away from the realm of autonomous trucking and embracing the opportunities within AI animation and gaming. This change is marked by a formal rebrand; the company will now operate under the name CreateAI.

Controversy Surrounding Asset Relocation

The rebranding announcement follows a period of considerable controversy. This centers on TuSimple’s previously declared intentions to transfer its remaining U.S.-based assets to China. The purpose of this move is to provide funding for its newly defined business ventures, a plan initially revealed in August.

From Self-Driving Trucks to AI Development

TuSimple ceased its U.S. self-driving truck operations and was delisted from the stock market in January 2024. This occurred just three years after a successful IPO which raised $1.35 billion.

Initial plans involved a restart of operations within China. However, earlier this year, TuSimple significantly reduced its workforce specializing in autonomous driving technology. Subsequently, the company began actively recruiting personnel for positions related to AI animation and the gaming industry.

Shareholder Concerns and Allegations

Certain shareholders have voiced opposition to this fundamental shift in business direction. Accusations of self-dealing have been leveled against Mo Chen, a co-founder of TuSimple, who also serves as its chief producer and a director.

Connections to Other Businesses

Chen maintains ownership or has established connections with several other companies operating in the animation and gaming sectors. It has come to light that these affiliated businesses are playing a role in CreateAI’s new endeavors.

A recent filing revealed that the board approved a $25 million agreement in November with two game development companies linked to Chen. This deal is for the development and distribution of “Heroes of Jin Yong,” a role-playing video game. To address potential conflicts of interest, Chen transferred his ownership stake in these companies to a trust in May 2024. However, the trust’s beneficiaries are members of his family, as stated in the filing.

Continued Interest in Autonomous Driving Technology

Despite the absence of an active autonomous vehicle development program, TuSimple CEO Cheng Lu indicated in September that the company still intends to license its self-driving technology to partners in China. CreateAI’s published business plan also mentions plans to generate revenue from its existing autonomous driving intellectual property.

Shareholder Push for Liquidation

Some shareholders, including co-founder and former CEO Xiaodi Hou, are seeking to prevent the transfer of the company’s remaining cash reserves – approximately $450 million as of September – to China.

Hou has urged shareholders to support his effort to replace the current board of directors with a new board committed to liquidating the company and returning all available cash to stockholders.

Introducing the "Ruyi" AI Model

CreateAI’s plans for these capital resources are becoming clearer. Concurrent with the rebrand, CreateAI announced the launch of its first major AI model, “Ruyi,” designed for “image-to-video” generation. This model is available as open source on Hugging Face.

The company states that Ruyi was developed in under six months, leveraging “technological know-how building upon the company’s autonomous driving expertise.” CreateAI believes this model also forms the basis for proprietary AI tools and infrastructure geared towards video game and anime content creation.

Future Outlook and Strategic Partnerships

“We are confident that our integrated approach at the intersection of generative AI and digital entertainment creation is a differentiating factor, one that provides significant long-term growth opportunities,” Lu stated.

CreateAI is also collaborating with Shōji Kawamori, a renowned Japanese anime designer known as the “Father of Macross.” Their joint project involves bringing the science fiction novel “The Three-Body Problem” to life as an animated feature film and a corresponding video game.

Update and Newsletter Information

This article has been updated to provide further clarification regarding CreateAI’s collaboration with Shōji Kawamori and to specify that “some,” rather than all, shareholders have expressed objections to the company’s new business direction.

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