Manus Raises $500M in First Funding Round After China Blocked Meta's $2B Acquisition
11 Sources
[1]
China's Manus raises over $500M in first funding round since split with Meta
Chinese AI lab Manus' parent company, Butterfly Effect, said on Thursday in a WeChat post that it has raised more than $500 million, the company's first funding round since Meta was forced to call off its $2 billion acquisition of the startup. Boyu Capital and IDG Capital led the funding round,
[2]
AI startup Manus raises $500 million in first funding round since Meta breakup
* Manus has raised more than $500 million in its first funding round since U.S.-based Meta Platforms was forced to reverse its acquisition. * Bloomberg reported last month that Manus was set to double its valuation in this financing round to $4 billion, what would make it the country's most
[3]
Manus raises more than $500M in first funding round since Meta exit
Boyu Capital and IDG Capital led the round for the AI agent startup after China blocked Meta's $2B takeover. Butterfly Effect, the company behind AI agent startup Manus, said that it has closed a funding round of more than $500 million. This would be the first raise since Meta's $2 billion-plus
[4]
Manus raises $500M after China blocked Meta acquisition
Manus announced earlier this month that operations had fully restarted on an independent footing following the Meta separation, with its founding team committed to advancing AI agent technology for a global audience. The funding round comes after a prolonged unwinding process. As Manus announced
[5]
AI Startup Manus Raises $500 Million After China Nixed Meta's $2 Billion Acquisition
Manus reported $100 million in annual recurring revenue about eight months after its March 2025 launch; no valuation was disclosed for the new round. Manus, the AI agent startup that Meta bought for about $2 billion before China forced Meta to give it back, has raised more than $500 million in
[6]
AI startup Manus raises $500m after Meta acquisition blocked by China
Beijing (AFP) - AI startup Manus, whose acquisition by Meta was blocked by the Chinese government, said Thursday it had completed a funding round that raised more than $500 million. It comes just weeks after the Chinese-developed, Singapore-based company said it had resumed independent operations
[7]
AI agent developer Manus raises $500M+ at reported $4B valuation
Manus, the creator of the eponymous artificial intelligence agent, has raised more than $500 million in funding. The Chinese startup announced the round today. It stated that private equity firm Boyu Capital led the investment with contributions from Tencent Holdings Ltd., one of China's largest
[8]
AI start-up Manus confirms fundraising of $500m post Meta's failed acquisition
Eurasia Group's Dan Wang noted that the fundraising is evidence of investors' continued interest in backing Manus, despite the fall out from the Meta incident. It has been confirmed that Manus has raised funds of more than $500m, not long after Meta's proposed $2bn-plus acquisition of the AI
[9]
Manus funding: Manus raises more than $500 million after Meta exit
Manus, the AI startup formerly under the umbrella of Meta, has achieved a remarkable funding milestone, securing over $500 million in its latest financing round. This pivotal moment occurred after the company unhinged from Meta due to a recent reversal of acquisition. The round saw support from
[10]
After Blocked Meta Buyout, Muse Rival Manus Raises $500M+ - Meta Platforms (NASDAQ:META)
Returning investors like the AI agent operator for its experience making and selling practical software as Meta and other tech companies compete for the same work image credit: Bamboo Works * Manus has raised more than $500 million after its founders and earlier investors bought the company back
[11]
Manus Raises $500 Million After China Blocks Meta's Acquisition | PYMNTS.com
Butterfly Effect announced the round in a post on Chinese social media platform Weixin. According to a Google translation of the post, as well as multiple media reports, the round was led by Boyu Capital and IDG Capital, with follow-on investment from Tencent, HSG and ZhenFund. The company said in
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Chinese AI agent startup Manus has raised over $500 million led by Boyu Capital and IDG Capital, marking its first funding round since Beijing blocked Meta's $2 billion acquisition in April. The raise values the company at approximately $4 billion and signals renewed investor confidence despite regulatory scrutiny and geopolitical tensions between China and the West.
Manus Secures Major Funding After Regulatory Intervention
Manus raises $500 million in its first funding round since China blocked Meta acquisition, with Boyu Capital and IDG Capital leading the investment.
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The AI startup's parent company, Butterfly Effect, confirmed the raise through a WeChat post on Thursday, with existing shareholders Tencent, HSG (formerly known as Sequoia China), and ZhenFund also participating.2
While the company did not disclose its post-funding valuation, Bloomberg reported last month that Manus was negotiating to raise $500 million at a $4 billion valuation, effectively doubling the $2 billion price Meta had agreed to pay.3
Source: Silicon Republic
The Meta Acquisition That Never Was
The first funding round since Meta breakup comes after a tumultuous period for the AI agent startup. Meta announced its $2 billion acquisition of Manus in December 2025, following the company's strategic relocation of staff to Singapore in mid-2025.
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At the time of the deal, Manus was pulling in annual recurring revenue of over $100 million, just eight months after its March 2025 launch.5
The acquisition appeared to be a blueprint for Chinese startups seeking global reach, but it quickly became a cautionary tale about operating between regulators in Beijing and Washington.2
In April, China blocked Meta acquisition through an unprecedented intervention by the National Development and Reform Commission (NDRC), which cited foreign investment rules and ordered the parties to unwind the deal.
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The directive stated it would "prohibit foreign investment in Manus in accordance with laws and regulations," reflecting intensifying worries in China over losing AI talent and researchers to the West.5
By the time of the order, Meta had already begun integrating Manus's team and technology into its own systems, making the separation particularly complex.2
Independent Operations and Product Evolution
Manus resumed independent operations in August following the end of the Meta deal, though the separation required the company to delete some user data created on or after December 29, 2025.
3
The AI startup has since launched Manus 2.0, which introduces a new architecture built around the Cascade execution system, bringing new products and capabilities to its platform.1
The company also introduced Cue app, a standalone personal-agent application that gives general-purpose AI agents their own email addresses, phone numbers, digital wallets, and computers.
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The app lets agents communicate, handle tasks across services, and make payments within limits set by the user, positioning Manus alongside competitors like Cursor, Lovable, and Replit in the AI agent space.1
Source: SiliconANGLE
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Market Dynamics and Investor Confidence
The successful raise suggests investors aren't deterred by regulatory scrutiny or Beijing's unprecedented order to block the Meta acquisition.
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Dan Wang, China director at Eurasia Group, noted that "the fundraising shows that the short-term fallout of the Meta case has been contained and investors are willing to back Manus as an independent company," while also highlighting renewed confidence in the commercial potential of AI agents.2
The raise also demonstrates that appetite for AI agent startup investments has held up, even as underlying foundation models improve quickly and price competition intensifies.
2
When Manus launched in March 2025, it positioned itself as a Chinese rival to premium AI agents, with demand so frantic that invite codes were reportedly listed on Chinese resale marketplaces for as much as 10 million yuan, over $1.3 million.5
Broader Implications for Tech and Geopolitics
The Manus case reflects wider geopolitical tensions in the AI sector. Under the hood, the company has acknowledged using Anthropic's Claude and fine-tuned versions of Alibaba's Qwen models alongside its own technology.
5
The company is also reported to be considering a Hong Kong IPO, according to recent reports.1
Source: TechCrunch
Butterfly Effect stated it will continue hiring both at home and abroad following the funding round.
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This expansion comes as China tightens controls on AI talent mobility—in May, China required some senior AI workers at private firms, including Alibaba and DeepSeek, to get approval before traveling abroad.5
Meanwhile, Meta has pressed ahead with its own personal AI agent, launching its Muse agent in early September, modeled on the open-source AI agent OpenClaw.
2
Watch how Manus navigates the increasingly complex regulatory landscape while competing in a market where Chinese AI approaches levels of quality that can compete head-to-head against American companies.5
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