Alibaba leads $290 million investment for building a new kind of AI model as LLM limits emerge
Summary
Alibaba Cloud led a 2 billion yuan (about $290 million) investment in ShengShu, the startup behind the AI video generation tool Vidu, as part of a Series B funding round joined by TAL Education and Baidu Ventures. The funding will support development of a "general world model" that uses multimodal data (vision, audio, touch) to bridge digital domains like game and AI-generated video with physical domains such as autonomous driving and robotics. ShengShu recently released the Vidu Q3 Pro model and says it has strategic partnerships with companies building embodied AI systems; the startup declined to disclose its valuation. The move reflects a broader industry shift from text-trained LLMs toward world models better suited for physical-world reasoning and embodied AI applications.
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