Manus, the AI agent startup Meta was forced to let go, just raised more than $500 million as an independent company — and its revenue reportedly quintupled in the process. Bottom line: Beijing unwound Meta’s $2-billion-plus acquisition in April, and Manus looks stronger without it.
What happened
Butterfly Effect, Manus’s parent company, said on Thursday that it completed a funding round of more than $500 million. The round was co-led by Boyu Capital and IDG Capital, with existing investors Tencent, Sequoia China, and ZhenFund also participating.
Manus develops general-purpose AI agents that can autonomously carry out tasks such as research and automation with minimal human input. The new capital lands as the firm resumes fully independent operations.
The Meta deal that wasn’t
In April, Beijing ordered Meta to unwind its acquisition of Manus amid tightening scrutiny of US investment in Chinese startups developing advanced AI technologies. The deal had been valued at more than $2 billion. In August, Manus said it would resume operating as an independent company and delete some user data as part of the separation from Meta.
The reversal doesn’t appear to have slowed the company down. The Information reported in June that Manus’s annualized revenue run rate had surged to about $500 million — up from $100 million at the time of the Meta acquisition — and that the firm was considering a joint-venture structure incorporated in China that could pave the way for a Hong Kong listing.
Why it matters
From the subscriber’s perspective: this is the clearest evidence yet that the AI agent market is bigger than any single owner’s ecosystem. Meta lost Manus through no choice of its own, and Manus responded by quintupling revenue and raising one of the largest AI rounds of the year from Chinese investors. If you’re evaluating which AI agent platforms will matter in a year, the ones customers actually pay for — not the ones a big-tech parent keeps alive — are the ones to watch.
FAQ
Why did Meta have to give up Manus?
Beijing ordered Meta to unwind the acquisition in April amid scrutiny of US investment in Chinese startups working on advanced AI. The deal, worth more than $2 billion, was scrapped rather than completed.
Who backed the new $500M+ round?
Boyu Capital and IDG Capital co-led, with existing backers Tencent, Sequoia China, and ZhenFund joining.
What does Manus actually do?
It builds general-purpose AI agents that autonomously handle tasks like research and automation with minimal human input.
Could Manus go public?
The Information reported in June that the company was considering a China-incorporated joint-venture structure that could clear a path to a Hong Kong listing.
Sources: Reuters; The Information (revenue and listing plans via Reuters)