Manus, the Chinese-founded AI agent startup, has raised more than $500 million in its first funding round since Chinese regulators forced it to reverse a $2 billion acquisition by Meta. Its parent company, Butterfly Effect, announced the financing on October 8, 2026, as Manus resumed independent operations and continued developing its AI products.
The funding round was co-led by Boyu Capital and IDG Capital, with participation from existing investors Tencent, HSG, formerly Sequoia China, and ZhenFund. Manus did not disclose its latest valuation, although September reports indicated it was seeking approximately $500 million at a $4 billion valuation.
Manus Returns to Independent Operations After Meta Deal Collapses
Manus gained attention in 2025 after demonstrating an AI agent capable of completing complex tasks with limited human supervision. The startup relocated employees to Singapore in mid-2025 before announcing its acquisition by Meta in December that year.
At the time, Manus reportedly generated more than $100 million in annual recurring revenue. However, Chinese authorities ordered the company to reverse the acquisition in April 2026 following a regulatory investigation into the transaction.
The decision came amid concerns in China about domestic AI technology and research talent moving to foreign companies. Manus subsequently announced its return to independent operations in August, confirming that some user data would need to be deleted to comply with regulatory requirements.
Affected users were required to back up certain data generated after December 29, 2025, before its deletion on August 23 and 24. Manus said users could restore their backed-up information beginning August 25.
New Funding Supports AI Development and Hiring
Following its separation from Meta, Manus has resumed fundraising and plans to continue recruiting employees in China and overseas. The company is also reportedly considering a public listing in Hong Kong, although no formal listing plans have been announced.
Manus develops general-purpose AI agents that can perform research, build websites and applications, create presentations, generate videos, and automate workflows. Its products compete with AI development platforms such as Cursor, Lovable, and Replit.
The company recently introduced Manus 2.0, featuring a redesigned architecture and additional capabilities for its AI agents. The update focuses on improving how the software manages tasks, tools, and interactions across different applications.
Manus has also launched Cue, a standalone application that gives personal AI agents their own email addresses, phone numbers, digital wallets, and computers. These agents can communicate with external services, carry out tasks, and make payments within limits established by users.
Featured image credits: baike.baidu.com
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