Delisted autonomous driving company TuSimple announced today that it has officially changed its name to CreateAI and released several advancements in the field of generative AI. Its main business has transitioned from technology services like image recognition to truck autonomous driving technology, Autonomous Freight Network, and has now pivoted to generative AI. Has this former automobile startup finally found its way?

Why it Matters: The rebranding and pivot reflect both the challenges and opportunities TuSimple has faced in recent years. These transformations not only highlight the shifting landscape of the tech industry, but also raise questions about the future of companies caught between their original missions and emerging market trends.

Details:

• CreateAI has launched its first large-scale model product, “Ruyi”, positioned in the field of open-source image-to-video generation. Serving as the foundation of its self-developed AI infrastructure, the company plans to build multiple AI generative tools for game and animation production based on “Ruyi”.
• CreateAI also announced it has secured the official license for the famous wuxia IP, The Legend of the Condor Heroes by Jin Yong, and will develop a large-scale open-world RPG game based on the series.
• In August, TuSimple reportedly reached a cooperation agreement with Shanghai Three Body Animation Co., Ltd. to jointly develop the first animated feature film and video game based on the internationally renowned science fiction novel series The Three-Body Problem by Liu Cixin. Today, CreateAI announced a collaboration with animation director Shoji Kawamori (known for Macross) and animation studio Shirogumi Inc. to use AIGC, to push creators to achieve greater breakthroughs in showcasing vast cosmic civilizations for the Three-Body Problem IP.​​

Context: TuSimple initially established its presence in the US, going public on the NASDAQ with impressive momentum. However, about three years later, the company decided to delist from NASDAQ and cancel its common stock. Since then, it has repeatedly shifted its core business, reflecting the tumultuous journey the startup has gone through.

• On October 31, 2022, Hou Xiaodi, CEO, CTO, and President of TuSimple, was removed from his position. A month later, TuSimple co-founder Chen Mo and former CEO Lu Cheng rejoined the team. However, Lu Cheng’s ideas and business strategies did not align with Hou Xiaodi’s vision.
• Navistar, which had collaborated with TuSimple for two and a half years, ended its partnership with the company at the end of 2022. 
• According to its financial reports, TuSimple’s R&D investment reached $164 million in the first three quarters of 2023, with a gross loss of $500,000. In December 2023, TuSimple carried out its third round of layoffs since its founding. Subsequently, the company began selling its assets in the US.
• On January 18, TuSimple announced that it had decided to delist from the NASDAQ in the US and cancel its common stock.
• Before the delisting, two US shareholders filed a lawsuit against the company’s veterans for “leaking business secrets.” After a hearing, the court issued a TRO against TuSimple.
• TuSimple‘s CEO, Lu Cheng, has previously stated that the company has no plans to exit the transportation industry and will continue to promote the commercialization of autonomous driving technology through technological cooperation and licensing.

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