Chinese game company XD Inc. has taken a strategic equity position in fledgling studio MiAO, investing US $14 million for a 5.3 percent stake, marking a valuation of approximately US $264 million for the company.
The investment was executed via XD Inc.’s wholly‑owned subsidiary through a share subscription agreement. Under this arrangement, the subsidiary subscribed to 7 million Series B1 preferred shares, representing 5.30% of MiAO’s fully diluted equity post‑issuance.
Founded in mid‑2022 by Wu Meng, former CEO of Giant Network, MiAO is positioning itself as a developer of open‑world, multiplayer experiences intertwined with social interaction and virtual world elements. The studio is still in its early stages, having reported no revenue and approximately US $8.3 million in cumulative losses across 2023 and 2024.
Despite a lack of earnings, MiAO secured sizable early‑stage capital: about ¥1 billion (~US $140 million) in an angel round in 2023.
According to XD, the decision reflects confidence in MiAO’s growth potential, vision, and alignment with XD’s own ecosystem. The new capital will also enable the launch of MiAO Artificial Intelligence Labs (MAIL), which will drive innovation at the intersection of gaming and AI.
“In the short term, our focus is on developing intelligent tools to automate coding, level design, storytelling, and art asset creation, thereby boosting development efficiency.
“In the long term, our vision is to build an open, Al-driven platform that enables anyone–regardless of technical background–to create games with ease.”
XD Inc.
