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Alibaba Cloud invests $290M in AI startup ShengShu to advance real-world simulation tech beyond chatbots

Market News
09 Apr 2026
CNBC
View Source
Bullish
pluang ai news

Alibaba Cloud led a $290 million investment in ShengShu, a startup developing AI video generation tool Vidu, to build advanced AI "world models" that simulate real-world physical environments beyond text-based AI like chatbots. This investment supports ShengShu's goal to bridge digital and physical domains, enhancing AI's ability to model and predict real-world behavior, crucial for robotics and autonomous systems. The move highlights a shift in AI development from language models to multimodal data including vision, audio, and touch. Alibaba also invested in related startups focusing on AI grounded in physical space, signaling a broader push into embodied AI technologies.

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