Krux
April 11, 2026
Alibaba Bets $293M on AI Video Startup's Robotics Pivot
Published: April 11, 2026 at 12:34 AM
Updated: April 11, 2026 at 12:34 AM
100-word summary
Alibaba Cloud just led a $293 million Series B for ShengShu Technology, the Chinese company behind Vidu, an AI video generator. Here's the twist: the money isn't for making better videos. ShengShu plans to build a "world model" that trains on vision, audio, and touch to link digital simulations with robotics and self-driving cars. The bet reveals where China's AI race is heading next. Less than three months ago, ShengShu raised another $88 million. Two fundraises in one quarter signals Chinese tech giants see world models as the bridge from generating pixels to controlling physical machines.
What happened
Alibaba Cloud just led a $293 million Series B for ShengShu Technology, the Chinese company behind Vidu, an AI video generator. Here's the twist: the money isn't for making better videos. ShengShu plans to build a "world model" that trains on vision, audio, and touch to link digital simulations with robotics and self-driving cars. The bet reveals where China's AI race is heading next. Less than three months ago, ShengShu raised another $88 million.
Why it matters
Two fundraises in one quarter signals Chinese tech giants see world models as the bridge from generating pixels to controlling physical machines.