Chinese AI startup Manus is negotiating a fresh $500 million funding round that would value the company at $4 billion. This aggressive push comes just months after Beijing forced the breakup of a planned $2 billion acquisition by Meta. The Wall Street Journal reports that potential backers include IDG Capital, Boyu Capital, and battery giant Contemporary Amperex Technology. Existing investors like Tencent and Zhenfund are also in the mix. The startup is simultaneously exploring a restructuring to pave the way for an IPO in Hong Kong.
The path to independence was messy. Manus had relocated staff to Singapore in mid-2025 and announced the Meta deal that December, boasting over $100 million in annual recurring revenue. But Chinese regulators stepped in, citing export control violations and fears of losing top AI talent to the West. The block forced Manus to untangle itself from the American social media giant. Early backers reportedly helped the company buy back its shares at a much lower $2 billion valuation. Users even had to back up their own data this August as Manus deleted records generated during the brief Meta ownership period to comply with strict jurisdictional rules.
Now operating independently again, Manus is betting on its product suite to drive growth. The company offers AI agents for vibe-coding, app building, design, and video generation, positioning itself against rivals like OpenAI, Lovable, and Replit. The founding team remains in charge, signaling stability despite the regulatory whiplash. This pivot highlights a growing trend where Chinese AI firms seek domestic or regional capital rather than risking further cross-border entanglements.
Valuing Manus at $4 billion represents a significant rebound from the $2 billion buyback price. It suggests investors see strong potential in its agent-based tools despite the geopolitical headwinds. However, the reliance on anonymous sources and the lack of official comment from Manus leaves some questions unanswered. Can the company sustain its momentum without the deep pockets and global distribution network Meta would have provided? The upcoming IPO plans will likely provide the clearest signal of market confidence.
