Manus is back on its own and investors are betting big on it. The AI agent startup’s parent company, Butterfly Effect, said on Thursday it has completed a funding round of more than $500 million, the first since Meta was forced to unwind its $2 billion-plus acquisition of the company.
Here is the short version: China blocked Meta’s deal in April, Manus returned to operating as an independent company in August, and now Chinese and global investors have handed it one of the largest AI funding rounds of the year at a reported valuation of around $4 billion.
What happened: Manus raises over $500 million
According to Reuters, the round was co-led by Boyu Capital and IDG Capital, with existing investors Tencent, HSG (formerly Sequoia China) and ZhenFund also participating. The announcement came via a WeChat post from the company on Thursday, October 8.
The company did not disclose its valuation, but reports last month suggested it was in talks to raise $500 million at a $4 billion valuation. That would be roughly double the $2 billion acquisition price Meta had agreed to pay.
Why Meta’s $2 billion deal collapsed
Manus went viral last year after a demo of its general-purpose AI agent, which can carry out research and automation tasks with minimal human input. The company moved its staff to Singapore in mid-2025, and that December Meta announced a $2 billion acquisition that would have been one of the largest purchases in the Facebook owner’s history.
In April 2026, Beijing ordered Meta to unwind the deal as China tightened scrutiny of US investment in Chinese startups working on advanced AI. At the time, Beijing also reportedly restricted overseas travel by two of Manus’s co-founders, a signal of how seriously the government treated the talent question.
Manus said in August it had resumed operating as an independent company and was required to delete some user data as part of its separation from Meta.
Who is betting on Manus now
The investor list is telling. Boyu Capital and IDG Capital led the round, and Tencent came back in alongside HSG and ZhenFund. Tencent’s continued backing matters because it already owns one of the most aggressive AI businesses in China, and it clearly sees Manus as part of that future rather than a competitor to hedge against.
According to The Information, Manus’s annualized revenue run rate had surged to about $500 million by June, up from roughly $100 million when Meta bought it. Revenue growing fivefold in under a year is exactly the kind of momentum that commands a $4 billion price tag.
What Manus actually does
Manus builds general-purpose AI agents similar to what companies like Cursor, Lovable and Replit offer. Its tools let users build apps and websites, create designs and presentations, and generate video from natural language prompts. Last month the company launched a major update to its AI agent tool alongside a new standalone app called Cue.
Cue is worth paying attention to because it plays in the same arena as Meta’s personal agent Muse, which launched to strong investor excitement. Both apps let users create their own personal AI agents for everyday tasks like booking restaurants and making phone calls. Meta’s Muse is covered in more detail in our Meta Muse for small business guide.
The agent space is heating up fast. OpenAI’s always-on Dots agents run on their own cloud computers, and Cloudflare’s Clef decision models are pushing open-weight AI agents forward. Manus now has the war chest to compete with all of them.
What the funding means for users
The company says it will keep hiring both in China and abroad. It has also said it is forming teams to build products for the domestic Chinese market, a notable shift from its Singapore-based, global-first posture of the past year.
Separately, Manus is reported to be considering a Hong Kong listing, with a joint-venture structure incorporated in China. It will not start the IPO process until at least 2027, according to a source cited by Reuters.
The bigger picture
The Manus saga is one of the clearest examples of how geopolitics now shapes AI competition. A startup can double in value while its acquirer is forced to walk away, as long as its product revenue keeps climbing and its home market keeps investing. For users, the practical takeaway is simpler: independent AI agents with real momentum are going to keep arriving, and Manus has the funding to be one of the names that sticks around.
FAQ
How much did Manus raise?
More than $500 million, according to the company’s October 8 announcement. The round was led by Boyu Capital and IDG Capital.
Why did Meta’s acquisition of Manus fail?
Chinese regulators ordered Meta to unwind the $2 billion deal in April 2026 over concerns about US investment in Chinese AI startups and the loss of AI talent to the West.
What is Manus’s valuation now?
Manus did not disclose it, but reports suggest the round values the company at around $4 billion, roughly double Meta’s $2 billion acquisition price.
What is the Manus Cue app?
Cue is a standalone app launched in September 2026 that lets users create personal AI agents for everyday tasks like booking restaurants and making phone calls, competing with tools like Meta’s Muse.
Is Manus going public?
The company is reportedly considering a Hong Kong listing through a China-incorporated joint-venture structure, but it will not begin the process until at least 2027.