Self-driving truck startup TuSimple rebrands as CreateAI, shifts to gaming tech (updated)

CreateAl Holdings

19/12/2024 06:00

(Adds legal background and dispute over strategic shift in
paragraphs 5-6)
       BEIJING, Dec 19 (Reuters) - TuSimple Holdings  TSPH.PK 
said on Thursday it would rebrand as CreateAI and pivot from
autonomous trucking to AI gaming technology, marking an attempt
by the once-prominent self-driving truck startup to make a
comeback.
    CEO Cheng Lu told Reuters in an interview that the move into
gaming and animation technology represented a natural evolution
of the company's capabilities, though the transition comes after
two years of setbacks and regulatory challenges.
    Founded in 2015, TuSimple attracted investments from Chinese
internet giant Sina Corp and global heavyweights such as Nvidia,
Volkswagen and UPS. But the self-driving truck developer's
fortunes reversed in 2022 when U.S. regulators began probing its
Chinese connections, triggering boardroom disputes.
    Early this year, the company said it had decided to delist
from Nasdaq, fewer than three years after raising $1.35 billion
in an April 2021 initial public offering.
    TuSimple is facing a major legal challenge brought by former
CEO Xiaodi Hou, which resulted in a court order restricting the
company from U.S.-China financial transfers "beyond normal
business operations". The company is also embroiled in a dispute
over its U.S. assets, including $450 million in cash reserves.
    While CEO Lu said the board had approved management's March
proposal to pivot to AI gaming, representatives for Hou and
other shareholders have contested the move, claiming investments
in Chinese gaming and animation development lacked proper
shareholder approval.
    The company cited third-party reports valuing the global
gaming market at $200 billion in 2023, according to a business
plan document sent to Reuters.
    The rebranded CreateAI will focus on video game and anime
production and publishing, leveraging its newly developed
image-to-video AI model, Ruyi, for content development, the
business plan document shows. 
    The company has 270 employees globally, including research
and content production teams across China, Japan and the United
States.

 (Reporting by Liam Mo and Brenda Goh. Editing by Mark Potter)
 ((liam.mo@thomsonreuters.com;))