Manus, a Chinese artificial intelligence startup under Butterfly Effect, has closed a major funding round totaling over $500 million. It marks the company’s first raise following its forced split with Meta after a planned $2 billion acquisition was called off. The financing was led by Boyu Capital and IDG Capital, with contributions from existing investors including Tencent, HSG (formerly Sequoia China), and ZhenFund. Manus has announced plans to expand its hiring both in China and internationally.
While Manus hasn’t publicly confirmed its valuation, it was reported shortly before the raise that the company was seeking $500 million at a valuation of about $4 billion. The startup came under the spotlight when it released a demo of its AI agent last year and later relocated its team to Singapore in mid-2025.
Meta Deal Collapses, Regulatory Pressure Rises
The proposed $2 billion acquisition by Meta was announced in December 2025. However, Chinese authorities intervened in April 2026, directing Manus to cancel the agreement amid mounting concerns over losing AI expertise to overseas firms. In August 2026 Manus officially resumed operations as an independent entity and was required to delete certain user data as part of the separation from Meta.
Product Push: Manus 2.0 and Cue
Manus competes with other AI product and agent platforms such as Cursor, Lovable, and Replit. Its offerings include a chatbot, tools for vibe-coding, app and website builders, design and presentation tools, video generation, and more. Its latest release, Manus 2.0, introduces a new architecture along with upgraded capabilities. The company also launched Cue, an app that empowers its AI agents with unique email addresses, phone numbers, digital wallets, and even standalone computing access. Agents can perform tasks across services and enact transactions, governed by permissions set by users.
Though Manus didn’t confirm where it stands now, it reported over $100 million in annual recurring revenue at the time of its deal with Meta. It’s also exploring a potential IPO in Hong Kong.
Why this matters: Manus’s successful raise signals resilience for Chinese AI startups amid regulatory headwinds and disrupted foreign investment. It shows the company not only survived its high-profile breakup with Meta but is now accelerating growth, product expansion, and global hiring. What to watch next: Manus’s valuation, how it executes its Cue-powered agent vision, and whether a public listing in Hong Kong materializes.
