Manus Secures Over $500 Million in Landmark Funding Round Following Meta Deal Collapse
Chinese AI startup Manus, a subsidiary of Butterfly Effect, announced on Thursday that it has successfully raised more than $500 million in its first funding round since the collapse of Meta’s planned $2 billion acquisition. The funding marks a significant milestone for the company, underscoring its resilience and continued growth amid geopolitical challenges and market uncertainty.
Leading the investment were Boyu Capital and IDG Capital, while existing shareholders including Tencent, HSG (formerly Sequoia China), and ZhenFund also participated. Manus has stated its intention to expand its talent pool by hiring aggressively both within China and internationally, reflecting its commitment to innovation and global presence.
Valuation and Financial Background
Although Manus has not publicly disclosed its current valuation, recent reports from September indicated that the company was in discussions to raise $500 million at a valuation of approximately $4 billion. This figure aligns with the company’s rapid ascent following the viral success of its AI agent demo last year.
The startup, which relocated its core staff to Singapore in mid-2025, was on track for a major transition when Meta announced its acquisition deal in December 2025. At that time, Manus reportedly generated over $100 million in annual recurring revenue, highlighting its strong market traction and business viability within the competitive AI landscape.
Unwinding the Meta Acquisition and Independent Operations
In April 2026, Chinese regulators intervened to block the acquisition, citing increasing national concerns over the outflow of AI talent and intellectual property. The directive required Manus to unwind the deal, a move that underscored the delicate balance between technological innovation and national security interests in China’s AI sector.
Following the regulatory mandate, Manus resumed independent operations in August 2026, announcing that it had deleted certain user data as part of the separation process. The company is reportedly exploring an initial public offering (IPO) in Hong Kong, positioning itself for further expansion and market recognition.
Innovative AI Products and New Releases
Manus develops AI products and agents comparable to offerings from Cursor, Lovable, and Replit, providing users with chatbot interfaces and vibe-coding tools that enable the creation of applications, websites, designs, presentations, and video content. Its product portfolio addresses diverse user needs ranging from creative workflows to automation.
Recently, Manus launched Manus 2.0, an upgraded platform featuring a new architectural framework and enhanced capabilities. Among its innovations is Cue, a standalone app that equips personal AI agents with dedicated email addresses, phone numbers, digital wallets, and virtual computers. Cue empowers these agents to communicate autonomously, execute tasks across various services, and perform transactions within user-defined limits, showcasing Manus’s commitment to advancing user-centric AI technology.
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