Manus raises $500M+ after Beijing blocked Meta's $2B acquisition

#What happened

Butterfly Effect, the parent company of AI agent startup Manus, said on Thursday it had completed a funding round of more than $500 million, resuming independent operations after unwinding Meta's $2 billion-plus acquisition. The round was co-led by Boyu Capital and IDG Capital, with existing investors Tencent, HSG, and ZhenFund also participating.

In April, Beijing ordered Meta to unwind its acquisition of Manus amid tightening scrutiny of US investment in Chinese startups developing advanced AI technologies. Manus said in August it would resume operating as an independent company and delete some user data as part of its separation from Meta.

The Information reported in June that Manus' annualised revenue run rate had surged to about $500 million, up from $100 million when Meta acquired it, and that the firm was considering a joint-venture structure incorporated in China, paving the way for a Hong Kong listing. A Hong Kong IPO process would not begin until at least 2027, according to a Reuters source. The company did not disclose its valuation; Bloomberg previously reported Manus was seeking roughly $4 billion, double what Meta had agreed to pay.

#Why it matters

Manus is a direct rival in the always-on personal agent race: it launched its Cue app, which gives agents their own email, phone, wallet, and computer, on September 28, one day before OpenAI unveiled Dots. A half-billion raise days after regaining independence shows investors still see enormous potential in autonomous AI agents as a category, even as OpenAI, Meta, and Anthropic battle for the space.

Verified Oct 9, 2026.