AI Powerhouse Manus Secures Staggering $500M+ After Break From Meta!
Chinese AI lab Manus, through its parent company Butterfly Effect, has successfully secured over $500 million in a new funding round. This investment follows the termination of its $2 billion acquisition by Meta, which was blocked by Chinese authorities concerned about talent migration. Manus is expanding its advanced AI product offerings, including Manus 2.0 and the innovative Cue app, while also planning global hiring and a potential Hong Kong IPO.
Butterfly Effect, the parent company of Chinese AI lab Manus, announced a successful funding round on Thursday, securing more than $500 million. This marks the company's first funding round since a high-profile $2 billion acquisition deal with Meta was called off. The investment round was spearheaded by prominent firms Boyu Capital and IDG Capital, with existing shareholders such as Tencent, HSG (formerly Sequoia China), and ZhenFund also participating. Manus has stated its intention to continue its aggressive hiring strategy, recruiting talent both domestically and internationally.
The funding achievement follows a period of significant corporate maneuvering for Manus. The AI company gained considerable public attention last year following a viral demonstration of its advanced AI agent. In mid-2025, Manus relocated its staff to Singapore, preceding the announcement in December of Meta's plan to acquire the startup for $2 billion. At the time, Manus was reportedly generating over $100 million in annual recurring revenue. However, the acquisition was ultimately halted in April when Chinese authorities intervened, ordering the AI startup to unwind the deal. This regulatory action underscored growing concerns in China regarding the potential loss of valuable AI talent and researchers to Western entities.
Following the termination of the Meta acquisition, Manus resumed independent operations in August. As part of the split agreement, the company was required to delete certain user data. While Manus did not disclose its current valuation, reports from the previous month indicated the company was in discussions with investors to raise $500 million, at a rumored valuation of $4 billion. Manus declined to respond to inquiries about its valuation.
Manus specializes in creating AI products and agents that offer functionalities similar to those provided by companies like Cursor, Lovable, and Replit. Its product suite includes a sophisticated chatbot and advanced vibe-coding tools, empowering users to develop applications and websites, craft designs and presentations, and generate video content, among other capabilities.
The company recently unveiled Manus 2.0, which introduces a new architectural framework along with enhanced products and capabilities built around a novel 'harness' system. Furthermore, Manus launched 'Cue,' a standalone application designed to give personal AI agents their own distinct digital identities, complete with email addresses, phone numbers, digital wallets, and access to virtual computers. The Cue app enables these agents to communicate, manage tasks across various services, and execute payments, all within financial limits meticulously set by the user.
Looking ahead, Manus is not only focused on expanding its workforce globally but is also reportedly exploring the possibility of going public in Hong Kong, indicating ambitious plans for its future trajectory.