Artificial intelligence startup Manus has raised more than $500 million in its first funding round since its proposed acquisition by Meta was cancelled, marking a major milestone for the company as it resumes independent operations.
Announced on October 8, 2026, the funding round was co-led by investment firms Boyu Capital and IDG Capital, with existing investors Tencent, HSG (formerly Sequoia China) and ZhenFund also participating. Manus's parent company, Butterfly Effect, did not disclose its latest valuation. However, reports before the funding round suggested the company was targeting a valuation of approximately $4 billion.
Why Did the Meta Acquisition Fail?
Meta announced a deal to acquire Manus for more than $2 billion in December 2025. However, Chinese authorities ordered the transaction to be unwound in April 2026 amid concerns about foreign investment in Chinese AI technology and the transfer of advanced AI capabilities overseas.
Manus subsequently separated from Meta and resumed independent operations in August 2026. The company had originally relocated its team from China to Singapore as it pursued international expansion.
The new funding demonstrates that investors remain interested in the startup despite the regulatory challenges surrounding the failed acquisition.
What Does Manus Do?
Manus develops general-purpose AI agents that can carry out multi-step tasks with limited human intervention. Its technology is designed to support activities such as research, data analysis, coding, website creation and workflow automation.
The company has also introduced Manus 2.0, featuring an updated execution system, and Cue, a standalone personal-agent application. Cue is designed to give AI agents access to tools such as email, phone numbers and digital wallets, allowing them to complete tasks across connected services within user-defined limits.
Revenue Growth Attracts Investors
Manus has attracted attention for its reported revenue growth. According to reporting cited by Reuters, the company's annualised revenue run rate reached approximately $500 million in June 2026, up from around $100 million when Meta agreed to acquire it.
These figures represent an annualised run rate, not necessarily revenue recognised over a full financial year. Nevertheless, the reported growth has strengthened investor interest in the business as demand for AI agents increases.
Competition in the AI Agent Market
Manus faces growing competition from technology companies developing AI assistants and autonomous agents, including OpenAI and Meta. Following the failed acquisition, Meta introduced its own Muse AI agent, adding another competitor to the rapidly developing market.
The latest funding could help Manus expand its products, hire talent internationally and strengthen its position in AI-powered automation. The company has also reportedly considered a future Hong Kong listing, although no confirmed IPO timetable has been announced.
What This Means for the AI Industry
The funding round highlights continued investor interest in AI agents that can move beyond answering questions to completing practical tasks. Businesses are increasingly exploring automation for research, software development, content creation and other knowledge-based activities.
However, Manus will need to sustain its reported growth, compete with larger technology companies and navigate regulatory challenges as it expands internationally.
Key Takeaway:
Manus has raised more than $500 million after its proposed $2 billion-plus acquisition by Meta was blocked by Chinese authorities. The investment strengthens its ability to compete in the AI agent market and highlights continued investor interest in autonomous AI systems.