Manus Raises Over $500M After Meta Deal Collapse, Eyes AI Agent Growth

Manus raises more than $500 million in funding led by Boyu Capital and IDG Capital after its $2 billion Meta acquisition collapsed under Chinese regulatory pressure.

Shivangi Yadav

Oct 8, 2026 - 13:30

Manus Raises Over $500M After Meta Deal Collapse, Eyes AI Agent Growth

Image Credit: TechAmerica.ai / AI-generated image

Chinese-founded AI startup Manus has raised more than $500 million after Meta’s planned $2 billion acquisition collapsed. Parent company Butterfly Effect secured the financing after the deal was unwound.

Boyu Capital and IDG Capital led the round, joined by existing investors Tencent, HSG, formerly Sequoia China, and ZhenFund. Manus confirmed the investment in a WeChat announcement Thursday and said it would continue hiring internationally.

Manus Secures Funding After Meta Acquisition Falls Apart

Manus drew attention in 2025 after demonstrating an AI agent that can carry out tasks with limited human intervention. The company relocated staff to Singapore in mid-2025 before announcing its acquisition agreement with Meta that December.

Chinese authorities ordered the transaction unwound in April 2026 amid concerns about transferring domestic AI talent and technology overseas. After the separation in August, Manus told users that some data had to be deleted, as explained in a user notice.

Manus was reportedly generating more than $100 million in annual recurring revenue when the Meta deal was announced. The company has since returned to fundraising as a standalone business.

Manus Valuation Remains Undisclosed

Butterfly Effect did not disclose its new valuation. September reports suggested a possible $4 billion valuation, but the final figure remains unconfirmed.

Manus is also reportedly considering a public listing in Hong Kong. No timetable has been announced.

Manus 2.0 and Cue Expand Its AI Agent Products

Manus develops AI agents and tools for creating applications, websites, presentations, designs and videos. Its products overlap with offerings from Cursor, Lovable and Replit.

The company recently introduced Manus 2.0, featuring a redesigned architecture and additional agent capabilities. The update changes the underlying software framework that coordinates tasks.

Manus also launched Cue, a standalone application that gives personal AI agents access to email addresses, phone numbers, digital wallets and computers. Agents can communicate across services, complete tasks, and make payments within user-set limits.

The company has not disclosed how it will allocate the new funding between product development and hiring.

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Shivangi Yadav Shivangi Yadav is a technology writer at TechAmerica.ai, covering artificial intelligence, startups, digital platforms, consumer technology, mobility, and emerging technologies. Her reporting follows major developments across the global technology industry, from AI companies and startup funding to product launches, regulatory investigations, software platforms, and changes affecting large technology markets. At TechAmerica.ai, Shivangi looks beyond the initial announcement to understand what a development means in practice. Her coverage often examines how new technologies, regulatory decisions, and business moves could affect companies, consumers, and the wider industry. She writes for an international audience, focusing on clear, well-researched reporting that gives readers useful context on fast-moving technology stories.