BEIJING (Reuters) – TuSimple Holdings announced on Thursday its decision to undergo a significant rebranding, transforming into CreateAI and shifting its focus from autonomous trucking to AI gaming technology. This strategic move represents the company’s attempt at a comeback following a series of challenges and setbacks in recent years.
CEO Cheng Lu revealed in an interview with Reuters that the transition to gaming and animation technology is a natural progression of CreateAI’s capabilities. The shift comes after facing regulatory hurdles and operational difficulties over the past two years. Established in 2015, TuSimple initially garnered investments from prominent entities like Chinese internet giant Sina Corp, as well as global heavyweights such as Nvidia, Volkswagen, and UPS.
However, the company’s fortunes took a downturn in 2022 as U.S. regulators launched investigations into its Chinese ties, leading to internal conflicts within the board. Earlier this year, CreateAI made the decision to delist from Nasdaq, a move that came less than three years after a successful $1.35 billion initial public offering in April 2021.
TuSimple is currently entangled in a significant legal battle initiated by former CEO Xiaodi Hou, resulting in a court order restricting financial transfers between the U.S. and China beyond standard business operations. Additionally, disputes have arisen concerning the company’s U.S. assets, including approximately $450 million in cash reserves.
Although CEO Lu indicated that the board approved the management’s proposal in March to pivot towards AI gaming, stakeholders like Hou and other shareholders have contested the decision. They argue that investments in Chinese gaming and animation development lacked proper shareholder consent. In defense of the shift, CreateAI referenced third-party reports projecting the global gaming market to reach $200 billion in 2023, as outlined in a business plan document shared with Reuters.
The rebranded CreateAI is now poised to concentrate on video game and anime production and publishing. Leveraging its newly developed image-to-video AI model, known as Ruyi, the company aims to enhance content development. CreateAI boasts a global workforce of 270 employees, comprising research and content production teams based in China, Japan, and the United States.
(Reporting by Liam Mo and Brenda Goh. Editing by Mark Potter)
