From Autonomous Trucks to Animation: TuSimple’s Surprising Rebrand
In a shocking turn of events, TuSimple, a Chinese autonomous trucking company, has rebranded as CreateAI, shifting its focus to video games and animation. This move comes as the self-driving startup sector faces significant challenges, with General Motors recently folding its Cruise robotaxi business.
A Troubled Past
TuSimple, which operated in both the U.S. and China, has faced its own set of challenges, including concerns over vehicle safety, a $189 million securities fraud lawsuit settlement, and delisting from the Nasdaq in February. Despite these setbacks, CEO Cheng Lu is optimistic about the company’s future, predicting break-even by 2026.
A New Direction
CreateAI’s new focus is on developing video games and animation, leveraging its artificial intelligence capabilities in autonomous driving software to create generative AI. The company’s first major AI model, Ruyi, is an open-source model for visual work, available on the Hugging Face platform.
A Lucrative Opportunity
Cheng expects the company’s first video game, based on the popular martial arts novels by Jin Yong, to generate “several hundred million” in revenue in 2027. This is a significant shift from the company’s previous losses, with TuSimple reporting a $500,000 loss in the first three quarters of 2023 and spending $164.4 million on research and development during that time.
Growing Ambitions
CreateAI plans to increase its headcount to around 500 next year, up from 300, and has already debuted its first animated feature film and video game based on the science fiction novel series “The Three-Body Problem.” The company aims to lower the cost of top-tier game production by 70% in the next five to six years.
Overcoming U.S. Restrictions
Despite U.S. restrictions on Chinese businesses’ access to advanced semiconductors, Cheng claims there are no issues, citing the company’s use of a mix of China and non-China cloud computing providers.
A New Chapter
CreateAI’s rebrand marks a significant shift in the company’s direction, one that could potentially pay off in a big way. With its focus on video games and animation, the company is poised to tap into a lucrative market, and its AI capabilities could give it a competitive edge.
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