Chinese artificial intelligence startup Manus is currently in talks to raise $500 million at a post-money valuation of $4 billion, now that it has resumed functioning as an independent entity following the collapse of its merger with Meta. The development was first reported by The Wall Street Journal, which cited anonymous sources familiar with the matter.
Potential participants in the funding round include IDG Capital, Boyu Capital, and power battery manufacturer Contemporary Amperex Technology. Existing investors Tencent, HSG, and Zhenfund are also expected to participate. Reports indicate that Manus is undertaking a corporate restructuring to prepare for a potential initial public offering on the Hong Kong Stock Exchange.
The startup gained significant attention last year after a viral demonstration of its AI agent capabilities. In mid-2025, Manus relocated its workforce to Singapore and subsequently announced a $2 billion acquisition agreement with Meta in December. At the time of the deal, the company was generating over $100 million in annual recurring revenue.
However, the partnership was halted after Chinese regulators blocked the transaction. Beijing cited concerns regarding the potential loss of AI talent and researchers to the West, along with possible violations of export controls and foreign investment regulations.
Since the separation from Meta began, early investors have assisted Manus in buying back shares at an approximate valuation of $2 billion. As part of the dissolution process, the company informed users in August that they needed to manually export and back up their data, as Manus was required to delete information generated during the period of Meta’s ownership to comply with jurisdictional regulatory demands.
Manus recently confirmed that it has restored full operational independence, with its original founding team remaining in leadership roles. The company develops AI products and agents that compete in a space occupied by firms such as OpenAI, Lovable, and Replit. Its suite of tools includes a chatbot, “vibe-coding” platforms for building applications and websites, design and presentation generators, video creation tools, and browser assistance.
Manus did not immediately respond to a request for comment.
Did users really have to manually back up their data because of jurisdictional rules? That sounds like a major trust issue for the platform.
Hong Kong IPO next? Interesting pivot. The AI agent space is getting crowded, so cash is definitely needed to compete with OpenAI.
$4 billion valuation after the Meta deal fell through? That’s a bold move. Regulators really changed the landscape here.