Report: TuSimple (CreateAI) Shared Sensitive Self-Driving Tech Data with China After US National Security Agreement

Self-driving truck startup TuSimple, now rebranded as CreateAI, allegedly sent sensitive data, essentially a blueprint of its American-made autonomous vehicle system, to a Beijing-owned firm. This occurred after the company committed to the U.S. government, under a national security agreement, to cease such transfers, according to The Wall Street Journal.

The data transfers to Chinese truck manufacturer Foton reportedly happened around February 2022. This was merely a week after TuSimple signed an agreement requiring the company to separate its business and technology from China-based employees and partners through firewalls and governance controls. The Wall Street Journal’s review of hundreds of pages of correspondence indicates that this data sharing continued until TuSimple’s compliance deadline six months later.

An investigation by the Committee on Foreign Investment in the U.S. (CFIUS) determined that the data sharing did not technically breach the agreement. However, TuSimple was fined for other violations and reached a $6 million settlement without admitting fault, as reported by the Journal.

TechCrunch’s attempts to reach TuSimple, now CreateAI, for comment were unsuccessful.

This situation highlights the limitations of U.S. safeguards designed to balance foreign investment with national security, particularly concerning TuSimple’s data transfers to China.

This revelation follows a previous TechCrunch report from eight months ago, detailing attempts by some TuSimple shareholders to block the company from transferring approximately $450 million to its Chinese subsidiary. This transfer aimed to fund a shift towards AI animation and content generation. The situation is still ongoing, with co-founder Xiaodi Hou in court seeking control over his voting shares to push for liquidation. In December 2024, TuSimple officially rebranded to CreateAI.

Since its IPO in 2021, TuSimple has faced numerous controversies. Founded in 2015 by Hou and Lu Chen, an entrepreneur with ties to Sina Corp, the China-backed startup quickly gained prominence in the autonomous vehicle industry. It raised around $2 billion from Chinese and U.S. investors and achieved a fully driverless run on public highways in the U.S.

Internal conflicts and federal investigations into its China connections led TuSimple to exit U.S. operations and voluntarily delist from the stock market in January 2024. The company aimed to restart self-driving operations in China, but both the CFIUS agreement and court orders prevented asset transfers to China, making this nearly impossible.

The Wall Street Journal’s reporting also highlighted the controversy surrounding Hydron, a Chinese hydrogen trucking startup founded by Chen. Hydron shared an office with TuSimple China, leading to the 2022 CFIUS probe that revealed TuSimple employees worked paid hours for Hydron in 2021 and shared confidential information.

Documents viewed by the Journal showed TuSimple brokered a deal in 2021 between Hydron and Foton, a subsidiary of state-owned BAIC Group with an AV tech agreement with a Chinese military university, to develop autonomous trucks.

The data sent to partners included technical instructions for server dimensions, brake designs, sensors, steering, power supply, and chips, transmitted via emails, Slack messages, and video calls. Employees also routinely downloaded autonomy source code developed by their American colleagues.

As geopolitical tensions with China increase, TuSimple’s case acts as a warning for Washington, driving a shift in U.S. policy. This has led to stricter rules on Chinese-linked tech deals and a broader effort to block high-risk transactions outright.