AI startup Manus has raised more than $500m in fresh funding following the collapse of its $2bn-plus acquisition by Meta.
The company’s parent, Butterfly Effect, completed the funding round on Thursday, with private equity firm Boyu Capital and investment group IDG Capital leading the deal. Existing investors Tencent, HSG and ZhenFund also participated in the round.
The funding comes as Manus resumes independent operations following the reversal of its acquisition by Meta, which was ordered by Beijing amid growing scrutiny of US investment in Chinese artificial intelligence firms.
Manus develops general-purpose AI agents capable of carrying out tasks including research and automation with limited human input. The technology has attracted growing interest from major technology companies seeking to develop AI tools that can complete tasks autonomously.
In April, Chinese authorities ordered Meta to unwind its acquisition of Manus, citing concerns around foreign investment in advanced AI technology. The deal had been announced in December and was valued at more than $2bn.
Manus said in August it would resume operating independently and delete some user data as part of its separation from Meta. The reversal returned the startup to its previous investors, with the latest funding round providing fresh capital as it attempts to establish itself outside the US technology group.
The company has not disclosed a valuation following the new investment. However, The Information reported in June that Manus was considering a fundraising round at a valuation of around $4bn, following a sharp increase in revenue.
Its annualised revenue run rate had risen to about $500m, up from $100m when Meta acquired the business, according to the report. The figures suggest the company has continued to expand its commercial operations despite the disruption caused by the abandoned transaction.
Manus was founded in China before relocating its operations to Singapore in 2025. Its proposed acquisition by Meta subsequently became caught up in tensions between Beijing and Washington over control of advanced technology, intellectual property and AI talent.
The Chinese government’s intervention highlighted the regulatory challenges facing technology companies seeking to acquire AI businesses across borders. The decision also forced Manus to return to independent ownership after a deal that would have placed it within one of the world’s largest social media and technology groups.
The latest round brings in two new lead investors while retaining backing from existing shareholders. Butterfly Effect has not disclosed how it intends to use the proceeds, although the company has continued developing its AI agent products as it resumes independent operations.
In June, The Information reported that Manus was considering a joint-venture structure incorporated in China, potentially paving the way for a Hong Kong listing. However, a source familiar with the matter said the company would not begin the process for an initial public offering before 2027.
The company now faces growing competition from established technology groups investing heavily in autonomous AI agents. Meta has continued developing its own AI products, while other firms are seeking to turn advances in artificial intelligence into commercially viable services.
The funding gives Manus additional backing as it seeks to build on its revenue growth and compete independently after the collapse of its deal with Meta.
