A fight is brewing as TuSimple tries to move $450M to China and pivot from self-driving trucks to AI animation
TuSimple, once a buzzy startup considered a leader in self-driving trucks, is trying to move its assets to China to fund a new AI-generated animation
TuSimple, once a buzzy startup considered a leader in self-driving trucks, is trying to move its assets to China to fund a new AI-generated animation and video game business. The pivot has not only puzzled and enraged several shareholders, but also threatens to pull the company back into a legal morass mere weeks after reaching a preliminary settlement in a class action lawsuit.
Now, a fight is brewing over roughly $450 million in funds, the bulk of which remains in the United States, TechCrunch has learned. And arguments over the company’s mission lie at the center of it.
Before the company formally disclosed its new business segment in August, a group of shareholders who got wind of the change sent a letter to the company’s board of directors. The letter, viewed by TechCrunch, alleges “potentially fraudulent activities” and asks the board to investigate whether funds were being misappropriated “to facilitate the growth of private ventures” established by Mo Chen, TuSimple’s co-founder and chairman.
Shareholders also complained the company failed to disclose its pursuit of AI animation; the board would eventually publicly announce a new AI animation and gaming business.
The group, which sent the letter anonymously in July, threatened litigation. However, at the time of this writing, no suits have been filed.
TuSimple’s new business segment, which is developing an animated feature film and video game based on the science fiction series “The Three-Body Problem,” is a startling change from its origins.