The Chinese autonomous trucking company formerly known as TuSimple has rebranded as CreateAI, signaling a pivot towards video game and animation development, the company announced on Thursday.
This strategic shift comes as the self-driving startup sector faces increased consolidation, with major players like GM shutting down its Cruise robotaxi business and other firms struggling to survive.
TuSimple, which previously operated in both U.S. and Chinese markets, grappled with significant setbacks, including safety concerns, a $189 million settlement for securities fraud, and delisting from Nasdaq in February.
Now under the CreateAI banner, CEO Cheng Lu, who returned to lead the company after a prior exit, envisions profitability by 2026.
Cheng’s optimism centers around a video game based on Jin Yong's famous martial arts novels, with an initial version planned for release in 2026 and a full version expected to generate “several hundred million” in revenue by 2027.
This ambitious project builds on the company’s AI expertise, originally developed for autonomous driving software, which it now leverages for generative AI applications akin to OpenAI’s ChatGPT.
Ahead of its delisting, TuSimple reported a $500,000 loss in the first three quarters of 2023 and spent $164.4 million on R&D during the same period. Co-founder Mo Chen began work in 2021 on an animated feature based on Jin Yong's stories, capitalizing on his strong ties with the author’s family.
The company believes its new direction aligns with shareholder interests, with Cheng noting strong support from both the management team and the board.
In tandem with its rebranding, CreateAI launched its first major AI model, Ruyi, an open-source tool for visual applications, available on the Hugging Face platform. Cheng also announced plans to increase staff from 300 to 500 by next year as part of the company’s expansion.
The company has already ventured into high-profile collaborations, including a partnership announced in August with Shanghai Three Body Animation to produce an animated film and video game inspired by the sci-fi novel series The Three-Body Problem.
CreateAI aims to reduce the cost of producing top-tier triple-A games by 70% over the next five to six years. However, Cheng declined to comment on potential partnerships with major gaming firms like Tencent.
Regarding U.S. restrictions on Chinese businesses, particularly access to advanced semiconductors critical for generative AI, Cheng downplayed any concerns, stating that the company utilizes a mix of cloud computing services from China and non-China providers.
Despite heightened trade tensions under the Biden administration, CreateAI appears confident in its ability to navigate these challenges.
The company is set to hold its annual shareholders meeting on Friday to further discuss its transformation and future plans.