TuSimple, a company that once raised $1.35 billion in its initial public offering (IPO) for its autonomous trucking technology, has completed its pivot away from the industry and rebranded as CreateAI, focusing on AI animation and gaming. The move comes amid controversy over the company's plans to move its remaining U.S. assets to China to fund its new business venture.

The rebranding effort follows TuSimple's shutdown of its U.S. self-driving truck operations and delisting from the stock market in January 2024. The company had initially planned to restart operations in China but parted ways with most of its autonomous driving staff earlier this year. Shortly after, it began hiring for roles related to AI animation and gaming.

Shareholders have objected to the business pivot, accusing Mo Chen, TuSimple's co-founder, chief producer, and director, of self-dealing. Chen owns or has ties to several other animation and gaming companies, and it appears that his other businesses are involved in TuSimple/CreateAI's new venture. In a recent filing, TuSimple revealed that the board approved a $25 million deal in November with two game development companies affiliated with Chen to develop and distribute "Heroes of Jin Yong," a role-playing video game.

In an effort to reduce potential conflicts of interest, Chen transferred his ownership interest in those companies to a trust that he does not control, although the beneficiaries of the trust are members of his family, according to the filing. Despite the controversy, CreateAI has announced the debut of its first major "image-to-video" AI model named "Ruyi," which is available open-source on Hugging Face.

The company claims to have developed Ruyi in under six months by leveraging "technological know-how building upon the company's autonomous driving expertise." CreateAI says its model also lays the foundation for proprietary AI tools and infrastructure for video game and anime content development. CEO Cheng Lu expressed confidence in the company's integrated approach at the intersection of generative AI and digital entertainment creation, citing significant long-term growth opportunities.

CreateAI is also working with Japanese anime designer Shōji Kawamori to bring "Father of Macross" to life via animated feature film and video game. The company has unveiled its long-term business strategy for generative AI animation and gaming, which includes plans to monetize its existing autonomous driving IP.

However, some shareholders, including co-founder and former CEO Xiaodi Hou, are opposed to the company's plans to move its remaining cash assets, which were $450 million in September, to China. Hou has called on shareholders to help him overturn the board of directors and replace them with a board that would liquidate the company and return all existing cash to stockholders.

The controversy surrounding TuSimple's pivot to CreateAI highlights the challenges companies face when shifting focus and the importance of transparency in business dealings. As CreateAI moves forward with its new venture, it remains to be seen how the company will navigate these challenges and ultimately succeed in the competitive AI animation and gaming industry.