Manus raises $500M in its first major funding round since splitting from Meta. The Chinese AI lab’s parent company, Butterfly Effect, announced the news on Thursday in a WeChat post, confirming it has secured more than $500 million in fresh capital.
The funding marks a significant milestone for the startup, which has navigated a turbulent year involving a cancelled acquisition, regulatory pressure, and a return to independent operations. The round was led by Boyu Capital and IDG Capital, with existing shareholders Tencent, HSG (formerly known as Sequoia China), and ZhenFund also participating.
What the Funding Means for Manus
The company said it will continue hiring both at home and abroad as it looks to expand its AI agent products and compete in an increasingly crowded market. The fresh capital gives Manus room to grow independently after a year of uncertainty surrounding its ownership and direction.
Manus did not disclose its valuation in the announcement. However, last month the company was said to be in talks with investors to raise $500 million at a $4 billion valuation. The company did not respond to questions about its valuation.
The Rise of Manus and the Meta Deal
Manus went viral following a demo of its AI agent last year. The startup relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition deal with Meta that December. At the time, Manus was said to be pulling in annual recurring revenue of over $100 million.
The acquisition would have brought the Chinese AI lab under Meta’s umbrella, but the deal ultimately fell apart. In April, Chinese authorities ordered the AI startup to unwind the deal amid intensifying worries in China over losing AI talent and researchers to the West.
The regulatory intervention reflected broader concerns about the flow of AI expertise and technology between China and Western countries. Manus, which had built a reputation for advanced AI agents, found itself at the center of those geopolitical tensions.
Returning to Independence
Manus resumed independent operations in August following the end of the Meta deal. As part of the split, the company said it was required to delete some user data. The requirement added another layer of complexity to the startup’s transition back to standalone status.
The company is also reported to be considering going public in Hong Kong, according to reports. A public listing would give Manus access to broader capital markets and potentially raise its profile among international investors.
For now, the focus remains on rebuilding momentum as an independent entity. The $500 million raise provides a substantial runway for the company to pursue its product roadmap and hiring plans.
What Manus Builds
Manus makes AI products and agents similar to what companies like Cursor, Lovable, and Replit offer. It provides a chatbot and vibe-coding tools that let users build apps and websites, create designs and presentations, and generate video.
The company recently launched Manus 2.0, which it says brings a new architecture with new products and capabilities built around a new harness. The update represents a significant step forward in the company’s core technology.
Manus also introduced Cue, a stand-alone app that gives personal AI agents their own email addresses, phone numbers, digital wallets, and computers. The app lets agents communicate, handle tasks across services, and make payments within limits set by the user.
Cue represents an ambitious vision for personal AI agents that can operate independently across digital services. By giving agents their own communication tools and payment capabilities, Manus is positioning itself at the forefront of agentic AI development.
Competing in a Crowded AI Agent Market
The AI agent space has become increasingly competitive, with numerous startups and established companies vying for dominance. Manus faces competition from well-funded players offering similar coding and automation tools.
The company’s early viral success gave it a strong brand recognition that few competitors can match. Its ability to secure over $500 million in funding despite the collapsed Meta deal suggests investors still see significant potential in its technology and team.
Manus has not disclosed specific plans for how it will deploy the new capital beyond hiring. The company’s trajectory will depend on its ability to execute on its product roadmap and maintain its competitive edge.
With the funding secured and independence restored, Manus is entering a new chapter. The company’s plans include continued hiring and the possibility of a public listing in Hong Kong, though no timeline has been confirmed.
The startup’s journey from viral sensation to acquisition target to independent company reflects the complex dynamics shaping the global AI industry. For now, Manus raises $500M and has the resources to chart its own course.
