Game giants are collectively investing in AI. On April 28, A-share game developer 37 Interactive Entertainment Network Technology Group Co.,Ltd. (002555.SZ) saw its stock price rise nearly 4% at market open. By 10:30 AM, the share price reached 21.65 yuan, an increase of 2.36%, with a total market capitalization of 47.89 billion yuan.

On the evening of April 27, 37 Interactive Entertainment released its first-quarter financial report for 2026. First-quarter revenue was 3.72 billion yuan, a decrease of 12.3% year-over-year. Net profit attributable to shareholders was 870 million yuan, an increase of 59% year-over-year. Non-GAAP net profit was 610 million yuan, up 13.7% year-over-year.

Despite the revenue decline, profit increased significantly. The report stated that performance growth primarily stemmed from growth in the main game business and contributions from investment income. However, compared to the main business, the investment income reported by 37 Interactive Entertainment drew more industry attention: it surged 981% year-over-year in the first quarter, an increase of 326 million yuan.

The financial report mentioned that during the reporting period, KNOWLEDGE ATLAS (Beijing ZhiPu HuaZhang Technology Co., Ltd.), in which 37 Interactive Entertainment invested through an associate, was listed. The change in KNOWLEDGE ATLAS's share price led to an increase in the fair value change gains of the associate. The company correspondingly recognized investment income based on its shareholding ratio.

KNOWLEDGE ATLAS debuted on the Hong Kong Stock Exchange in January this year under the banner of the "first major model stock," with an issue price of HK$116.2. Over the next three months, its share price soared, reaching a high of HK$1,078 intraday just last week, a gain of over 9 times. Although the price corrected to around HK$900 per share during today's trading, its total market capitalization remains close to HK$400 billion, delivering substantial returns to shareholders.

Looking back at the strategic move, 37 Interactive Entertainment had already invested in KNOWLEDGE ATLAS as early as 2023. Announcements show that in 2023, 37 Interactive Entertainment invested 25 million yuan to increase its capital share in Jiaxing Beisheng Hengwo Fund, raising its ownership stake to 57.34%. Following this capital increase, the Jiaxing Beisheng Hengwo Fund would directly or indirectly invest in equity of Beijing ZhiPu HuaZhang.

Besides KNOWLEDGE ATLAS, 37 Interactive Entertainment has also invested in two other major model companies. In 2024, the company disclosed significant external equity investments totaling approximately 310 million yuan. Over 100 million yuan of this was directed towards two major model firms: Moonshot AI and Baichuan AI. Specifically, about 71.26 million yuan was invested in Moonshot AI for a 0.3% stake, and approximately 35.41 million yuan was invested in Baichuan AI for a 0.27% stake.

37 Interactive Entertainment also broadly invests in companies across the AI industry chain, including Aishitech, LiJing Innovation, Qingwei Intelligence, Fangqing Technology, Huayi Quantum, Huxi Intelligence, BrainCo, and TCL RayNeo. According to its 2025 financial report, the company's significant external equity investments for that year totaled 450 million yuan, covering areas such as brain-computer interfaces, biomedicine, and energy technology.

Game companies with ample cash flow are viewing the AI industry as a rich vein to mine for navigating economic cycles.

miHoYo was one of the earliest angel investors in MiniMax and is one of the two leading sophisticated independent investors disclosed in the IPO prospectus, holding approximately 6.4% of the shares prior to MiniMax's IPO. MiniMax went public in January this year at an issue price of HK$165 per share. By the intraday session on April 28, its share price approached HK$740, a surge of over 4 times, with a current market capitalization exceeding HK$230 billion. Based on the latest market cap, miHoYo's stake has a paper value nearing HK$15 billion.

Earlier, at the end of 2025, game company Century Huatong announced that due to its indirect investment in Moore Threads, it expected to report a net profit of 640 million yuan for the fourth quarter of 2025. For reference, Century Huatong's revenue in 2024 was 22.62 billion yuan, with a net profit attributable to shareholders of 1.21 billion yuan. This implies that a single successful cross-industry investment contributed nearly half of the profit volume of a leading game company's 2024 earnings.