TuSimple, a Chinese autonomous trucking company, has rebranded as CreateAI and shifted its focus to video game development and animation. The company announced the significant transformation on Thursday, marking a major change in its business strategy. CEO Cheng Lu, who rejoined the company over two years ago, expects CreateAI to break even by 2026.
He highlighted that the company aims to reduce the cost of high-quality, triple-A game production by 70% over the next five to six years. The transition is underscored by the development of a video game based on popular martial arts novels by Jin Yong, which is projected to generate substantial revenue after its full launch in 2027. “We expect several hundred million in revenue with the full version’s release,” Cheng stated.
TuSimple’s pivot comes amidst challenges in the autonomous vehicle industry, with notable exits such as GM folding its Cruise division. The company, operating in both the U.S. and China markets, faced difficulties, including a securities fraud lawsuit, before its rebranding. Co-founder Mo Chen, who has ties with the Jin Yong family, began developing an animated feature based on the author’s works.
CreateAI pivots to video games
This shift leverages TuSimple’s background in autonomous driving technology, which Cheng believes provides a strong foundation for developing generative AI. CreateAI debuted its major AI model, Ruyi, an open-source tool for visual work available through the Hugging Face platform.
“Our shareholders recognize the potential in this direction, and the management team has received strong support,” Cheng noted. The company plans to increase its workforce to around 500 next year, up from 300. However, not all stakeholders are on board.
Co-founder Xiaodi Hou, the company’s largest individual shareholder, has questioned the pivot and called for the company’s liquidation. Hou has since founded Bot Auto, another autonomous trucking company based in Houston. In August, when still operating as TuSimple, the company announced a partnership with Shanghai Three Body Animation to create content inspired by the science fiction series “The Three-Body Problem.” This initiative was part of its strategy to become a key player in generative AI applications for video games and animation.
Cheng asserted that U.S. restrictions on advanced semiconductors have not impacted the company, as it employs a blend of Chinese and non-Chinese cloud computing providers. CreateAI will hold its annual shareholders’ meeting this Friday.
