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Manus seeks $4B valuation in $500M fundraise after aborting Meta merger

Chinese AI startup considers Hong Kong IPO as it resumes independent operations

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Chinese AI startup Manus, which earlier this year was forced to abandon a $2 billion merger with Meta after Beijing blocked the deal, is in discussions to raise $500 million at a $4 billion valuation as it resumes independent operations, according to The Wall Street Journal. The company is also weighing a restructuring to prepare for an initial public offering in Hong Kong.

Manus, which went viral following a demo of its AI agent, relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition deal with Meta that December. At the time, the startup was reportedly generating over $100 million in annual recurring revenue.

However, intensifying concerns in China over losing AI talent and researchers to the West led Beijing to veto the deal, citing potential violations of export controls and foreign investment rules. Since then, Manus has been untangling itself from the American social media giant. Its early investors and backers reportedly helped the company buy back its shares at a valuation of about $2 billion.

As part of its separation from Meta, Manus told users this August that they would need to export and back up their own data because the company had to delete data generated after Meta’s acquisition “to comply with regulatory requirements in specific jurisdictions.”

Now operating independently again, Manus this month said its founding team would continue to lead it. The company offers a chatbot, vibe-coding tools for building apps and websites, design and presentation creation, video generation, and a browser assistant — products similar to those from OpenAI, Lovable, and Replit.

Potential investors in the funding round include IDG Capital, Boyu Capital, battery maker Contemporary Amperex Technology, as well as existing backers Tencent, HSG and Zhenfund, the Journal reported. Manus did not immediately return a request for comment.

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Analysis

Why This Matters

  • The fundraising talks signal continued investor confidence in Chinese AI startups despite heightened geopolitical tensions and regulatory crackdowns on technology outflows.
  • If successful, the $4 billion valuation would nearly double the company's worth from the buyback price, underscoring the resilience of AI agent companies in raising capital.
  • A Hong Kong IPO could provide a clear exit path for investors and set a precedent for other Chinese AI firms navigating similar regulatory constraints.

Background

Manus rose to prominence in early 2025 after a viral demo of its AI agent. By December 2025, Meta had agreed to acquire the startup for $2 billion, a deal that would have moved key talent and technology to the US. But China's regulatory bodies grew increasingly wary of losing AI expertise to Western competitors. In April 2026, Beijing vetoed the acquisition after a months-long probe, citing export controls and foreign investment rules. Manus subsequently bought back its shares from Meta with help from early backers, restoring its independence. The company relocated staff to Singapore as part of the original deal but has since resumed operations with its founding team at the helm.

Key Perspectives

Investors (IDG Capital, Boyu Capital, CATL, Tencent, HSG, Zhenfund): They see an opportunity to back a proven AI agent startup at a lower valuation than its peak, with a clear path to liquidity via a Hong Kong IPO. Chinese regulators: Beijing's veto demonstrated a firm stance on preventing strategic AI assets and talent from being absorbed by US tech giants, even at the cost of disrupting major deals. Critics/Skeptics: The $4 billion valuation — double the buyback price — may be ambitious given the operational disruption of unwinding the Meta deal and the need to rebuild trust with users who had their data deleted.

What to Watch

  • Whether the $500 million round closes and at what valuation, and which investors commit.
  • Progress on the restructuring plans for a Hong Kong IPO, including any regulatory filings.
  • Any additional scrutiny from Beijing on Manus's ongoing independent operations and its data handling practices.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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