Game maker Kuro takes 15% stake in AI startup Yanzhiyu at $28M valuation

What's the deal? Guangzhou Kuro TechnologyDealroom has a profile for this one. Try Dealroom → has invested in YanzhiyuDealroom has a profile for this one. Try Dealroom →, a Shenzhen-based multimodal AI startup, in an angel round valuing the company at US$27.5M. Kuro took a 15% stake and was the round's sole new investor, with registration completed on October 13. Kuro founder and chairman Liu Sheng also joined Yanzhiyu's board.

What does Yanzhiyu do? The startup focuses on hyper-realistic voice synthesis, real-time dialogue, and 3D character-driving systems. Its products include the Vocu audio platform and the Talki Verse 3D character system, which generates text, voice, and 3D motion in sync for virtual streamers and game NPCs.

Who's behind it? Founder Xie Weiduo, born in 2002, studied computer science at the University of Paris before dropping out in June 2024 to return to China and build the company. Yanzhiyu's team numbers fewer than 10 people. Its Vocu model topped Hugging Face's TTS Arena global ranking, beating overseas rivals including Eleven LabsDealroom has a profile for this one. Try Dealroom →, and can clone a voice from a three-second sample.

What's the endgame? Kuro, the studio behind Punishing: Gray Raven and Wuthering Waves , builds its business on characters and world-building. Yanzhiyu's voice, motion, and dialogue technology maps directly onto how game characters speak, perform, and interact. It is Kuro's first public move into AI investment.

Why now? Liu has said Kuro remains a game company that will "shake hands with technology on the left, and culture on the right" (translated from Chinese). The deal signals a shift from buying third-party plug-ins to betting on underlying technology. It is Kuro's second public investment this year, after it took a 10% stake in Shanghai studio Shiguang BackpackDealroom has a profile for this one. Try Dealroom → in May.

The signal: Chinese game makers are pouring money into AI. Data from Gamma shows the top 50 domestic firms made 108 AI investments in the first half of 2026, already surpassing all of 2025. The focus is shifting from general-purpose large models toward vertical bets on voice and 3D generation, with Tencent-backed studios, 37 Interactive EntertainmentDealroom has a profile for this one. Try Dealroom →, and miHoYoDealroom has a profile for this one. Try Dealroom → among those already active.

Read more: sohu.com

Image credit: Generated with Gemini