Alibaba leads $290 million investment for building a new kind of AI model as LLM limits emerge
By Evelyn Cheng
Published on April 10, 2026.
Alibaba Cloud has led a $290 million investment in ShengShu, the startup behind the AI video generation tool Vidu, to build a new type of artificial intelligence that can replicate the real world. This move comes as developers are focusing on "world models" rather than "large language models". The investment was made through TAL Education and Baidu Ventures. The company declined to disclose its valuation.
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