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American Focus > Blog > Economy > China self-driving truck company TuSimple pivots to genAI for games
Economy

China self-driving truck company TuSimple pivots to genAI for games

Last updated: December 18, 2024 9:03 pm
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China self-driving truck company TuSimple pivots to genAI for games
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CreateAI, formerly known as TuSimple, has made a significant pivot in its business strategy, shifting its focus from autonomous trucking to video games and animation. The decision comes in the wake of challenges faced by the company, including concerns over vehicle safety, a substantial settlement of a securities fraud lawsuit, and delisting from the Nasdaq in February.

CEO Cheng Lu, who rejoined the company after being pushed out, is optimistic about CreateAI’s future prospects. He anticipates the business breaking even in 2026, with a video game based on popular martial arts novels by Jin Yong playing a crucial role in achieving this milestone. The game is set to release an initial version in 2026, with a full version expected to launch in 2027, generating “several hundred million” in revenue.

Prior to the delisting, TuSimple reported a loss of $500,000 in the first three quarters of 2023 and allocated $164.4 million to research and development during that period. Co-founder Mo Chen, with a strong connection to the Jin Yong family, has been working on developing an animated feature based on the stories since 2021.

CreateAI is leveraging its artificial intelligence capabilities in autonomous driving software to venture into generative AI, a cutting-edge technology that powers applications like OpenAI’s ChatGPT. The company recently introduced its first major AI model, Ruyi, an open-source model for visual work available on the Hugging Face platform.

The company is confident in its transformation, with plans to increase its headcount to around 500 employees next year, up from 300. CreateAI aims to revolutionize the video game and animation industry by reducing production costs for top-tier games by 70% within the next five to six years.

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Despite potential challenges posed by U.S. restrictions on Chinese businesses, Cheng stated that CreateAI is unaffected and utilizes a mix of China and non-China cloud computing providers. The company remains focused on innovation and growth, with an upcoming annual shareholders meeting scheduled to discuss the future direction of the business.

TAGGED:ChinacompanyGamesGenAIpivotsSelfDrivingtruckTuSimple
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