As workers set up the TuSimple booth at CES 2022 in the Las Vegas Convention Center, the company was preparing for a major shift. The Chinese autonomous trucking firm announced on Thursday it has now rebranded itself as CreateAI, pivoting its focus toward video games and animation.
Recently, the self-driving sector has faced some significant shake-ups, such as GM closing its Cruise robotaxi business. Amidst this changing landscape, TuSimple, which once operated across both U.S. and China markets, encountered its own hurdles. These included safety concerns with vehicles, a hefty $189 million settlement over securities fraud, and its delisting from Nasdaq earlier this year.
More than two years after CEO Cheng Lu returned to his role, following a previous removal, he is optimistic that the company could reach a break-even point by 2026. A video game, inspired by the well-loved martial arts novels of Jin Yong, is set to launch its initial version that year. Cheng is confident that by 2027, when the full version is available, it could generate several hundred million in revenue.
Before being delisted, TuSimple reported a $500,000 loss in the first nine months of 2023, with research and development expenditures reaching $164.4 million during the same timeframe. Co-founder Mo Chen, who has longstanding ties with the Jin Yong family, began working on an animated project based on these narratives back in 2021.
The firm has touted its AI advancements in autonomous driving tech as a cornerstone for developing generative AI capabilities. These advanced algorithms are similar to those behind OpenAI’s ChatGPT, which can produce remarkably human-like text responses. As part of the CreateAI rebranding, the company has unveiled its flagship AI model, Ruyi, which is an open-source visual model accessible on the Hugging Face platform.
“Clearly, our shareholders recognize the potential in this transformation and are eager to proceed,” Cheng expressed. “Both our management team and the Board of Directors have witnessed overwhelming backing from our shareholders.” An annual shareholders’ meeting is on the agenda for Friday.
Looking at future staffing, the company intends to grow its team, increasing from 300 employees to about 500 in the coming year.
Under its previous name, TuSimple, the company announced in August a collaboration with Shanghai Three Body Animation. Their goal was to create an animated film and video game rooted in the celebrated science fiction series “The Three-Body Problem.” At that juncture, the company also revealed its plans to establish a new business unit dedicated to generative AI applications for gaming and animation.
CreateAI aims to slash top-tier game production costs by 70% over the next five to six years. While Cheng chose not to disclose whether they are in negotiations with gaming behemoth Tencent, he seemed optimistic about the prospects ahead.
Regarding potential challenges from U.S. restrictions, Cheng dismissed any significant impacts, noting the company’s diversified approach to using both Chinese and non-Chinese cloud services. The U.S., particularly under the Biden administration, has tightened rules limiting Chinese firms’ access to high-end semiconductors essential for advanced AI technologies.
This story has been updated to confirm that CreateAI, formerly TuSimple, will be holding its annual shareholders meeting on Friday.
