AI startup Manus in talks to raise $500M at $4B valuation after Meta deal collapse
Chinese AI startup Manus is reportedly in discussions to raise $500 million at a $4 billion valuation, according to The Wall Street Journal. Potential investors include IDG Capital, Boyu Capital, and existing backers like Tencent. The company recently resumed independent operations after its planned $2 billion merger with Meta was blocked by Beijing over export control concerns.
The fundraising talks follow a turbulent stretch for Manus, which had agreed to a $2 billion acquisition by Meta in December before Beijing intervened, citing export control and foreign investment concerns. Early investors reportedly helped the company repurchase shares at roughly a $2 billion valuation as it worked to unwind its ties to the American tech giant.
Manus generates over $100 million in annual recurring revenue and offers AI products spanning chatbots, app-building tools, design and video generation, and browser assistants. The company relocated staff to Singapore in mid-2025 and is now weighing a restructuring that could position it for a Hong Kong IPO, with battery maker CATL among the potential new backers.
This funding round could reshape the competitive landscape for AI agents, as Manus's products rival offerings from OpenAI, Lovable, and Replit. The company's ability to attract major investors after a regulatory setback may signal resilience in China's AI sector, though export control tensions could continue to constrain its international ambitions. Users of AI development tools may benefit from increased competition, while investors face uncertainty about cross-border technology deals and the long-term viability of startups caught between geopolitical forces.