ShengShu Technology attracts new investment amid AI race in China

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Image credit: ShengShu Technology
Chinese artificial intelligence startup ShengShu Technology has raised 2 billion yuan ($292.59 million) in a funding round led by Alibaba Cloud, ​the company said on Friday, as competition intensifies in ‌China’s AI sector.

ShengShu said the funding would support development of a “general world model” that processes sensory information to simulate human perception and interaction, which the company ​describes as a step toward artificial general intelligence in physical ​environments.

The company did not provide a timeline for when ⁠such a system would be commercially available.

Chinese companies ranging from industry ​giants like ByteDance to startups such as humanoid robot specialist Unitree ​have begun exploring similar “world model” technologies.

ShengShu said the funding round included investments from Andon Haitang, China Internet Investment Fund, TAL Education Group, and Luminous Ventures. Existing investors ​LINK-X CAPITAL, Delta Capital, and Baidu Ventures also increased their ​stakes.

Founded in early 2023 by Tsinghua University alum Zhu Jun, ShengShu became the first ‌Chinese ⁠company to release a video generation model when it launched Vidu in April 2024.

The model was positioned as a competitor to OpenAI’s Sora, which the U.S. company later discontinued.

ShengShu has since released several updated ​versions of Vidu, ​including the ⁠Vidu Q3 model announced earlier this year.

The company has also recently expanded into robotics applications. In December ​2025, it open-sourced Motus, a model designed to control ​robots ⁠by processing multimodal data including video and audio.

The startup faces competition from Chinese technology giants including ByteDance, Alibaba and Kuaishou, which have all launched ⁠video ​generation models.

Internationally, companies such as Google and ​startups including Runway are also developing similar technologies.

Content Courtesy – Reuters

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