Chinese publisher XD Inc acquires 5.3% stake in Miao for $14m

• XD invests $14m for 5.3% stake in game developer Miao.
• Miao to remain independent despite XD investment.
• Purchase made via XD’s wholly-owned subsidiary.

Chinese games developer and publisher XD Inc has acquired a 5.3% stake in new studio Miao for $14 million.

The deal values the developer, formed by former Giant Network CEO Wu Meng, at around $246m. It follows an angel funding round in 2023 in which Miao secured ¥1 billion ($140m).

XD said the investment was based on Miao’s business prospects, growth potential, and synergies with its own operations. 

Miao said it will use the new capital to accelerate its game development initiatives and establish MiAO Artificial Intelligence Labs (MAIL), a division dedicated to advancing Al research in the field of game creation. 

The company is currently building an open-world multiplayer game as part of a broader push into virtual gaming and social interaction, with ongoing GaaS updates and tools for creators.

Ambitious goals 

Founded in 2022 by Wu Meng, Miao's long-term goal is to grow into a player-creator ecosystem offering social and leisure experiences, evolving from goal-driven to open-ended gameplay.

“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," the company explained. 

“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."