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NetEase's AI companion app Miaoshi to shut down amid industry shake-up

NetEase Pulls Plug on AI Companion App

NetEase Cloud Music's immersive AI companion platform Miaoshi (including its AI Adventures feature) will permanently shut down at midnight on July 14. The announcement comes as China's virtual partner sector faces increasing regulatory scrutiny.

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Company representatives confirmed the closure is part of "normal business development adjustments" that won't affect other NetEase Music services. The app has already stopped accepting new users and payments. Existing users can request refunds for unused tokens and membership fees through August 14, with options to export their AI chat histories.

Regulatory Winds of Change

The shutdown coincides with China's intensified oversight of AI companion services. In April, the Cyberspace Administration joined four other government bodies to issue new rules targeting inappropriate content - particularly material involving pornography, violence, or content that might trigger extreme emotions in minors.

Independent tests revealed many virtual companion apps had ineffective "minor mode" protections, poor content quality, and questionable practices encouraging user spending. These findings prompted interventions from local internet regulators, sparking industry-wide pushes for stricter age verification and real-name authentication systems.

A Sector in Transition

Miaoshi's closure reflects the broader transformation shaking China's AI companion industry. What began as a freewheeling gold rush is now evolving into a more tightly regulated space. Developers face growing pressure to balance commercial ambitions with compliance requirements - no easy task when user engagement often relies on emotionally charged interactions.

"This isn't just about one app shutting down," observed one industry analyst who requested anonymity. "It signals that regulators want clear boundaries around what these AI companions can and can't do - especially when it comes to younger users."

As the dust settles, surviving platforms will need to demonstrate they can deliver engaging experiences without crossing red lines. For Miaoshi's users, the countdown begins to say goodbye to their virtual companions.

Key Points:

  • Shutdown date: July 14, 2026 (services terminate at midnight)
  • Refund window: Until August 14 for unused tokens/memberships
  • Data exports: Chat histories available for download
  • Industry context: Part of broader AI companion regulation in China
  • User impact: No effect on other NetEase Music services