Chinese-founded artificial intelligence startup Manus has raised more than US$500 million (approximately S$639 million) in fresh funding after resuming independent operations following the unwinding of its planned acquisition by Meta.
The funding round was completed by Butterfly Effect, Manus’ parent company, on Oct 8. It was co-led by investment firms Boyu Capital and IDG Capital, with existing backers Tencent, HSG and ZhenFund also participating.
The deal marks a significant step for Manus as it seeks to expand its AI business independently after a high-profile acquisition agreement worth more than US$2 billion was reversed following intervention by Chinese authorities.
The latest fundraising also signals continued investor interest in AI agents — software designed to carry out tasks with limited human supervision rather than simply responding to prompts.
What Makes Manus Different From Traditional AI Chatbots?
Manus develops general-purpose AI agents capable of handling tasks such as research, information gathering and workflow automation.
Unlike conventional chatbots that primarily generate responses to user questions, AI agents can work through multiple steps to complete a task. Depending on the tools available, they may browse websites, organise information and help users produce practical outputs.
The technology has attracted attention as companies increasingly explore ways to automate repetitive work and improve productivity.
However, the market is becoming more competitive as major technology companies and AI startups introduce increasingly capable assistants that can perform similar functions.
How the Meta Acquisition Fell Apart
Meta announced its acquisition of Manus in December 2025 in a deal reportedly valued at more than US$2 billion.
The transaction was expected to give Meta access to Manus’ AI technology and team as the social media giant continued investing heavily in artificial intelligence.
However, Chinese authorities ordered the deal to be unwound in April 2026 amid growing scrutiny of foreign investment in strategically important AI technology.
The decision highlighted the challenges faced by technology companies operating across borders, particularly as the United States and China compete for leadership in advanced AI.
Manus subsequently announced in August that it would resume operating independently. The separation also required the company to delete certain user data as part of its arrangements with Meta.
Investor Confidence Remains Strong
The latest funding round suggests that investors remain willing to support Manus despite the uncertainty surrounding its ownership and international expansion.
Existing investors Tencent, HSG and ZhenFund joined new funding led by Boyu Capital and IDG Capital, although the company has not publicly disclosed its latest valuation.
Earlier reports indicated that Manus had been seeking a valuation of around US$4 billion. That figure should not be treated as a confirmed valuation for the completed funding round.
The company’s financial performance has also attracted attention. A report by The Information in June said Manus’ annualised revenue run rate had climbed to between US$400 million and US$500 million, compared with about US$100 million around the time of the Meta acquisition. These figures were attributed to people familiar with the company’s financials rather than audited public results.
Hong Kong Listing Remains a Possibility
Manus has also been linked to plans for a possible Hong Kong initial public offering, although no confirmed listing timetable has been announced.
A source familiar with the matter told Reuters that the company would not begin the IPO process before 2027.
A future listing could provide an avenue for raising additional capital, but Manus would still need to navigate regulatory requirements, investor expectations and competition in the rapidly evolving AI market.
A Fresh Start Amid the Global AI Race
Manus’ return to independent operations comes at a time when AI companies are competing to turn increasingly capable systems into commercially viable products.
For the startup, the immediate challenge will be to sustain revenue growth, attract customers and strengthen its technology while managing the regulatory complications surrounding its Chinese origins and international operations.
The latest funding provides additional financial backing for that effort, but it does not guarantee future success. Manus will need to demonstrate that its AI agents can deliver reliable results and remain competitive as larger technology companies continue developing similar capabilities.
Its next chapter will offer a closely watched example of how an AI startup can pursue global growth amid intensifying competition and geopolitical tensions.
