Happy Oyster, previously developed under the name HappyHorse-1.0 by Alibaba's ATH Innovation Division, features two primary modes. The "Directing" mode allows users to adjust plot elements and camera angles while video is being generated, producing up to three minutes of continuous video at 480p or 720p resolution. The "Wandering" mode supports first-person exploration of generated worlds using standard keyboard and camera controls.
The launch reflects Alibaba's broader strategy to expand its AI capabilities beyond language models into systems that can learn from and understand physical reality. The move positions Alibaba in closer competition with rivals including Tencent and its world model HY-World 2.0, as companies vie for revenue opportunities in AI-generated interactive content for gaming and film applications.