{"id":6095,"date":"2026-04-10T16:53:53","date_gmt":"2026-04-10T11:23:53","guid":{"rendered":"https:\/\/nervnow.com\/?p=6095"},"modified":"2026-04-10T17:04:04","modified_gmt":"2026-04-10T11:34:04","slug":"alibaba-cloud-backs-shengshu-with-293m-bet-on-world-model-ai","status":"publish","type":"post","link":"https:\/\/nervnow.com\/ro\/alibaba-cloud-backs-shengshu-with-293m-bet-on-world-model-ai\/","title":{"rendered":"Alibaba Cloud Backs ShengShu with $293M Bet on World Model AI"},"content":{"rendered":"<p><strong><em>Alibaba Cloud&#8217;s 2 billion yuan bet backs ShengShu as the startup pivots from video generation toward general world models designed to simulate physical environments and advance robotics.<\/em><\/strong><\/p>\n\n\n\n<p>Alibaba Cloud led a 2 billion yuan ($293 million) Series B investment in ShengShu Technology, the Chinese startup behind the AI video generation tool Vidu, the company announced Friday. The round highlights a broader industry shift toward &#8220;world models&#8221;\u00a0 AI systems trained on video and physical-world data rather than text.<\/p>\n\n\n\n<p>State-backed China Internet Investment Fund, TAL Education Group, and Baidu Ventures participated in the round, along with existing backers LINK-X Capital and Delta Capital, according to ShengShu&#8217;s official statement.&nbsp;<\/p>\n\n\n\n<p>ShengShu said the capital will fund development of a &#8220;general world model&#8221; that processes multimodal sensory data, including vision, audio, and touch, to simulate how the physical world operates. The company described the effort as a step toward AI capable of supporting autonomous vehicles, humanoid robots, and embodied AI systems deployed in industrial and home settings.<br><br><strong>ALSO READ: <\/strong><a href=\"https:\/\/nervnow.com\/ro\/ridge-ai-raises-2-6m-pre-seed-to-bring-browser-native-analytics-to-b2b-software\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Ridge AI Raises $2.6M Pre-Seed to Bring Browser-Native Analytics to B2B Software<\/strong><\/a><\/p>\n\n\n\n<p>&#8220;ShengShu believes that a general world model, built on multimodal data such as vision, audio, and touch, more naturally captures how the physical world works than large language models,&#8221; the company said. Zhu Jun, the company&#8217;s founder, added that the goal is to &#8220;connect perception and action&#8221; so AI systems can model and predict real-world behavior.<\/p>\n\n\n\n<p>The round follows a 600 million yuan raise, ShengShu closed roughly two months earlier from Qiming Venture Partners. The company declined to disclose its current valuation.<\/p>\n\n\n\n<p><span style=\"color: #0f0e17;\" class=\"stk-highlight\">Founded in early 2023 by Tsinghua University alumnus Zhu Jun, ShengShu became the first Chinese company to release a video generation model when Vidu launched in April 2024. The move came months before <a href=\"https:\/\/nervnow.com\/ro\/why-sora-failed-the-cost-revenue-crisis-at-the-heart-of-ai\/\" target=\"_blank\" rel=\"noopener\" title=\"Why Sora Failed: The Cost-Revenue Crisis at the Heart of AI\">OpenAI made its Sora tool widely available, a product OpenAI has since discontinued<\/a>. ShengShu&#8217;s latest Vidu Q3 Pro model, released in January, ranks among the top 10 video generation models globally, per Artificial Analysis.<\/span><\/p>\n\n\n\n<p>The investment is part of a broader Alibaba Cloud strategy in world-scale infrastructure. Last month, Alibaba and Baidu Ventures co-led a $50 million round in Tripo AI, a platform that generates 3D digital models from photographs and is developing its own world model. In September, Alibaba led a $60 million investment in PixVerse, which released a world model earlier this year. Alibaba has also open-sourced AI models for video generation and, in February, released a model for robotics applications.&nbsp;<\/p>\n\n\n\n<p>ShengShu also competes domestically with ByteDance and Kuaishou, both of which have released AI video generation tools, and faces international competition from Google and U.S. startups, including Runway.<\/p>\n\n\n\n<p>The broader push into world models reflects a recognized ceiling on what large language models can accomplish on their own. Researchers and investors increasingly argue that AI systems built for robotics and physical-world applications require more than text-based reasoning. They require the ability to perceive, simulate, and respond to spatial and sensory inputs that LLMs were not designed to handle.<\/p>\n\n\n\n<p>ShengShu said it has established strategic partnerships with companies developing embodied AI for industrial, commercial, and residential applications, though it did not name specific partners.<\/p>\n\n\n\n<p class=\"has-white-color has-palette-color-9-background-color has-text-color has-background has-link-color wp-elements-3764a96f773a1c76cdbaaa2e03fbb932\"><strong><em>Disclaimer: This report is based on publicly available information. Nervnow has not independently verified any claims.<\/em><\/strong><br><br><strong>MORE ON STARTUPS &amp; FUNDING\u00a0<\/strong><br><a href=\"https:\/\/nervnow.com\/ro\/nava-raises-22m-series-a-led-by-greenoaks-to-build-ai-cloud\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Nava Raises $22M Series A Led by Greenoaks to Build<\/strong><\/a><strong><a href=\"https:\/\/nervnow.com\/ro\/nava-raises-22m-series-a-led-by-greenoaks-to-build-ai-cloud\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><\/a><\/strong><a href=\"https:\/\/nervnow.com\/ro\/nava-raises-22m-series-a-led-by-greenoaks-to-build-ai-cloud\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>AI Cloud<\/strong><\/a><br><a href=\"https:\/\/nervnow.com\/ro\/neubird-ai-raises-19-3-million-to-scale-enterprise-production-operations\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>NeuBird AI Raises $19.3 Million to Scale Enterprise Production Operations<\/strong><\/a><br><a href=\"https:\/\/nervnow.com\/ro\/aria-networks-raises-125m-series-a-for-ai-data-centers\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Aria Networks Raises $125M Series A for AI Data Centers<\/strong><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Alibaba Cloud&#8217;s 2 billion yuan bet backs ShengShu as the startup pivots from video generation toward general world models designed to simulate physical environments and advance robotics.<\/p>","protected":false},"author":2,"featured_media":6096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[101,94],"tags":[84],"class_list":["post-6095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-funding-startups","category-news","tag-just-in"],"blocksy_meta":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/posts\/6095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/comments?post=6095"}],"version-history":[{"count":5,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/posts\/6095\/revisions"}],"predecessor-version":[{"id":6102,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/posts\/6095\/revisions\/6102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/media\/6096"}],"wp:attachment":[{"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/media?parent=6095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/categories?post=6095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nervnow.com\/ro\/wp-json\/wp\/v2\/tags?post=6095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}