TuSimple (now CreateAI) is under fire for sending sensitive data about autonomous vehicles to a Beijing-owned firm, despite a commitment to halt such transfers under a national security agreement. The data sharing with Foton, a Chinese truck manufacturer, occurred in February 2022, just a week after TuSimple signed the agreement mandating separation from Chinese employees and partners.
The investigation by the Committee on Foreign Investment in the U.S. (CFIUS) found that the data sharing didn’t technically violate the agreement. However, TuSimple did face penalties for other issues, including a $6 million settlement, without admitting fault.
TuSimple, which rebranded to CreateAI in December 2024, has been embroiled in ongoing controversies and internal struggles since its 2021 IPO. The company aimed to pivot its focus to AI animation and content generation but faced shareholder pushback against transferring $450 million to its Chinese subsidiary. Co-founder Xiaodi Hou is currently fighting in court for control over his voting shares. 
The Journal’s report unveils details of TuSimple’s previous ties with Hydron, a Chinese hydrogen trucking startup. Documents revealed that TuSimple shared technical data and even collaborated on truck development with Foton, a firm linked to the Chinese military.
Through a series of communications, TuSimple transferred technical specs including server dimensions, sensor designs, and chips while employees downloaded autonomy source code. This could exacerbate U.S.-China tensions and complicate policy on foreign tech investments further.
As geopolitical pressures mount, TuSimple’s situation serves as a cautionary tale for U.S. regulators, prompting stricter rules for tech deals linked to China.
