Alibaba Leads $300 Million Bet on AI Video Generator ShengShu

Alibaba’s cloud division spearheaded a $293 million (2 billion yuan) funding round for ShengShu Technology, a rising AI video generation startup in China’s competitive market. The investment marks a strategic push into generative AI, reinforcing Alibaba’s commitment to expanding its cloud and AI ecosystem amid global tech rivalry. ShengShu, a young but ambitious player, will use the funds to accelerate R&D and scale its AI-driven video creation tools for commercial and creative applications. This move intensifies China’s AI race, where tech giants like Tencent and ByteDance are also heavily investing in generative media solutions. The deal underscores growing industry confidence in AI-generated content as a transformative force in digital media, entertainment, and marketing.