TuSimple (CreateAI) Shared Self-Driving Data with China

CreateAI (TuSimple) Shared Sensitive Self-Driving Data with China Despite Security Agreement

CreateAI, formerly known as TuSimple, reportedly shared sensitive self-driving truck data with a Chinese company, Foton, after agreeing to restrict such transfers under a US national security agreement. The Wall Street Journal reports this data transfer occurred in February 2022, shortly after TuSimple signed the agreement with US regulators. The agreement mandated the company separate its US operations and technology from China.

The data sharing, which continued for months, involved technical blueprints of TuSimple's autonomous vehicle system. While a subsequent CFIUS investigation concluded the transfer didn't technically violate the agreement, TuSimple was fined $6 million for other infractions. The company did not admit fault.

Data Transfer Raises National Security Concerns

This incident highlights the challenges of balancing foreign investment with national security in the autonomous vehicle sector. It follows previous controversies surrounding TuSimple, including attempts to transfer US funds to its Chinese subsidiary and ties to the Chinese startup Hydron. TuSimple's co-founder, Xiaodi Hou, is currently involved in a legal battle for control of his voting shares.

The company rebranded to CreateAI in December 2024 after exiting US operations and delisting from the stock market earlier that year. The company aimed to refocus on AI animation in China but faced obstacles due to the CFIUS agreement and court orders restricting asset transfers.

The shared data included technical instructions for server dimensions, brake designs, sensors, steering, power supply, and chips, according to The Wall Street Journal. Foton, a subsidiary of state-owned BAIC Group, has ties to a Chinese military university working on autonomous vehicle technology.

This case has contributed to stricter US policies on Chinese-linked tech deals and a broader effort to block high-risk transactions.

TechCrunch has reported extensively on TuSimple's controversies, including its attempts to transfer funds to China, the internal struggles, and the eventual rebranding to CreateAI.