Chinese Startup ShengShu Raises $293 Million to Advance Artificial General Intelligence

BEIJING/SINGAPORE, April 10 — Chinese artificial intelligence startup ShengShu Technology has raised 2 billion yuan ($292.6 million) in a new funding round led by Alibaba Cloud, as competition intensifies in China’s rapidly evolving AI sector.

The company said the fresh capital will be used to develop a “general world model” designed to process sensory data and simulate human perception and interaction—an approach it views as a key step toward achieving artificial general intelligence (AGI) in physical environments. ShengShu did not provide a timeline for commercial deployment of the technology.

Focus on World Models and Multimodal AI

ShengShu’s strategy centers on building advanced AI systems capable of understanding and interacting with the real world through multimodal inputs such as video, audio and other sensory data. These so-called “world models” are gaining traction across the industry as companies seek to move beyond language-based AI toward more comprehensive intelligence systems.

Other Chinese firms, including ByteDance, as well as robotics-focused startups, are also investing in similar technologies, highlighting growing competition in this emerging segment.

Strong Investor Backing

In addition to Alibaba Cloud, the funding round included participation from Andon Haitang, China Internet Investment Fund, TAL Education Group, and Luminous Ventures. Existing investors such as LINK-X CAPITAL, Delta Capital and Baidu Ventures also increased their stakes.

Building Momentum Since Launch

Founded in early 2023 by Tsinghua University alumnus Zhu Jun, ShengShu has quickly established itself as a notable player in China’s AI landscape. In April 2024, the company launched Vidu, becoming the first Chinese firm to release a video generation model positioned as a competitor to OpenAI’s Sora.

Since then, ShengShu has rolled out several upgraded versions of its platform, including the Vidu Q3 model introduced earlier this year. The company has also expanded into robotics, open-sourcing its Motus model in late 2025 to enable robot control using multimodal data.

Intensifying Global Competition

ShengShu faces increasing competition both domestically and internationally. Chinese tech giants such as Alibaba and Kuaishou have introduced their own video generation models, while global players including Google and startups like Runway are advancing similar capabilities.