Alibaba Launches Happy Oyster AI for Creating 3D Games and VR Videos

On April 16, Alibaba officially released a 3D world model named “Happy Oyster” further expanding its AI product line with a direct focus on content creation fieldssuch as gaming, film, and VR video. The model was developed by Token Hub (ATHInnovation Business Unit), a new business unit under Alibaba, and comes from the same team behind the company’s previous video generation model, Happy Horse. Unlike traditional text-to-video models, Happy Oyster is positioned within the “world simulator” paradigm, aiming to model and reconstruct the physical and spatial properties of the real world. Built on a native multimodal architecture, it supports multimodal understanding and joint audio-video generation. It currently features two core functions: Roaming and Directing allowing users to build interactive,explorable AI-powered digital worlds in real time. These capabilities can be used to generate 3D environments and interactive videos, making them suitable for film production, game development, and VR video scenes. This technology shifts the logic of content production from passive generation to actively simulating worldevolution. At present, Happy Oyster is only available for a limited number of early experience users, and its large-scale commercialization path has not yet been determined. In this arena, Alibaba faces competition from Hunyuan3D and Genie. Alibaba has recently accelerated the pace of its AI product releases, having established cloud computing and AI as its core growth engines, with the goal of increasing related annual revenue to USD100 billion within five years.