Manus, an AI lab based in China, has successfully secured over $500 million in its initial funding round, as announced by its parent company, Butterfly Effect, in a recent WeChat update. This funding comes on the heels of a previously aborted $2 billion acquisition proposal by Meta.
The funding round was spearheaded by prominent investors Boyu Capital and IDG Capital, with contributions from existing stakeholders, including Tencent, formerly known as Sequoia China, and ZhenFund. Manus is reportedly committed to expanding its workforce in both domestic and international markets.
While Manus has not publicly revealed its valuation, reports from last month indicated that it was negotiating to raise $500 million at a valuation of approximately $4 billion.
Manus gained significant attention after a demonstration of its AI agent went viral last year. In mid-2025, the company relocated its operations to Singapore shortly before the acquisition deal with Meta was disclosed in December. At that point, Manus was believed to be generating annual recurring revenue exceeding $100 million.
However, in April, Chinese authorities intervened, mandating the cancellation of the Meta deal amidst rising concerns about the exodus of AI talent from China to the West.
As of August, Manus resumed its independent operations, which involved the deletion of certain user data as part of the separation agreement. There are also rumors that the company may pursue a public listing in Hong Kong.
Manus has not responded to inquiries regarding its valuation from TechCrunch.
The company specializes in AI products and agents akin to offerings from Cursor, Lovable, and Replit. Its latest solutions include chatbots and “vibe-coding” tools, paving the way for users to design apps, websites, presentations, generate videos, and more.
Recently, Manus unveiled Manus 2.0, showcasing a redesigned infrastructure that introduces new products and functionalities. This includes the launch of Cue, a standalone application that provides personal AI agents with distinct email addresses, phone numbers, digital wallets, and computers. Users can orchestrate tasks across different services and manage transactions within set limits.
Editor’s Take
This funding round is a significant milestone for Manus, reflecting its resilience and potential within the AI landscape following the setback with Meta. For users and businesses, the expansion of Manus’ capabilities could offer diverse tools and applications, enhancing their operational effectiveness. This development also indicates a renewed focus on homegrown talent and innovation in China’s AI sector.
Source: techcrunch.com
