Woofun AI reports that miHoYo, the developer behind 'Genshin Impact' and the 'Honkai' series, is executing a strategic pivot toward artificial intelligence despite maintaining an unlisted valuation exceeding ¥100 billion. The company has realigned its investment portfolio to include brain-computer interfaces, nuclear fusion, and AI ventures such as MiniMax, all serving the vision of creating a virtual world for one billion inhabitants.

This shift marks a departure from traditional game development toward foundational technology research.

Co-founder Cai Haoyu stepped down from management in September 2023 to helm Anuttacon, an overseas initiative dedicated to AI capable of speaking, acting, and seeing. Following the August 2025 Steam release of the interactive title 'Whispers of the Stars,' which garnered positive reception yet encountered technical constraints, Anuttacon redirected resources toward core language model development and R&D. This transition underscores a move away from consumer-facing games to underlying infrastructure.

Per Woofun AI data, co-founder Liu Wei has committed up to ¥100 billion over three years to build an 'emotionally intelligent large language model' rather than a generic alternative. Leveraging fifteen years of expertise in character design and emotional engagement, the firm launched 'BSide: Olivia Lin' on Steam on June 18 as a functional application instead of a game. The free software introduces a virtual character named Lin Li who plays the piano, responds to letters, and operates as a dynamic desktop wallpaper.

Structurally, this product diverges from standard AI companions by prioritizing 'human-like presence' through delayed responses and quiet companionship to address current technological limitations. The architecture integrates language models as the brain, acting models as the body, and intelligence frameworks for memory and personality to forge autonomous virtual beings. This approach suggests a fundamental rethinking of how users interact with digital entities.

Woofun AI analysis suggests that miHoYo's strategy represents a calculated attempt to monetize emotional resonance rather than transactional gameplay. By embedding AI within a familiar character design framework, the company aims to overcome the uncanny valley through intentional latency. This marks a significant evolution in how gaming giants approach the next generation of digital interaction.