Manus raises over $500 million after China forced Meta exit

Butterfly Effect, the parent company of AI agent startup Manus, has raised more than $500 million in its first funding round since Beijing ordered Meta to unwind its $2 billion acquisition of the company, CNBC reported on Thursday.

Boyu Capital and IDG Capital jointly led the round, the company said. Tencent, ZhenFund and HSG — all existing shareholders — also participated. Manus did not disclose its post-funding valuation.

What is Manus now worth?

A Bloomberg report from September indicated the round would lift Manus's valuation to $4 billion, twice its previous figure, placing it ahead of all other AI agent companies in China, according to CNBC.

The Information reported in June that Manus had grown its annualized revenue run rate to roughly $500 million, a fivefold increase from the $100 million recorded when Meta completed its acquisition, Reuters noted. That deal closed on December 29, 2025.

Why did the Meta deal collapse?

China's National Development and Reform Commission issued a directive in April ordering the parties to unwind the acquisition, citing the country's foreign investment rules. The separation required some user data to be deleted, and Manus announced in August that it would resume operating as an independent company.

The NDRC's order made clear that offshore incorporation does not shield a deal from Beijing's authority when the underlying technology and talent originated in China — a structure critics had called "Singapore washing." Manus originated in China before moving its base to Singapore.

"The fundraising shows that the short-term fallout of the Meta case has been contained and investors are willing to back Manus as an independent company," Dan Wang, China director at Eurasia Group, told CNBC. Wang also pointed to renewed investor confidence in the commercial potential of AI agents.

What has Manus shipped since the split?

After the separation from Meta, the company unveiled Manus 2.0, which runs on a new proprietary execution system called Cascade, according to the company. It also introduced Cue, a personal-agent app that gives each agent its own dedicated email address, phone number and mobile wallet.

Earlier this month, Manus said operations had fully restarted on an independent footing, with its founding team committed to advancing AI agent technology for a global audience.

What comes next?

Han Lin, China country director at The Asia Group, said the company faces a more immediate test than any potential public listing.

"The immediate task for Manus now is proving scale, profitability and regulatory alignment," Han Lin told CNBC.

The round signals that Chinese capital is ready to absorb assets Western buyers are forced to relinquish — but Manus must now prove it can grow as a standalone company under continued regulatory scrutiny from Beijing.