Manus targets $4 billion valuation in $500 million raise as it re-establishes independence

Manus, the Shanghai-originated artificial-intelligence startup, is in talks to secure a $500 million financing round that would value the company at roughly $4 billion, according to a report from The Wall Street Journal. The capital raise comes as Manus re-opens its operations as an independent entity following the collapse of a high-profile acquisition by Meta earlier this year.

Potential backers for the round include IDG Capital, Boyu Capital and battery-maker Contemporary Amperex Technology, alongside existing shareholders such as Tencent, HSG and ZhenFund. Sources said the company is also evaluating a restructuring plan designed to position it for a future initial public offering on the Hong Kong exchange.

Manus first captured public attention with a viral demonstration of its AI agent last year. In mid-2025 the firm moved its workforce to Singapore, and in December announced a $2 billion deal to be acquired by Meta. At that point the startup reported annual recurring revenue exceeding $100 million. However, Chinese regulators intervened, citing concerns over export controls and foreign-investment rules, and ultimately blocked the transaction. The decision reflected broader governmental worries about the outflow of AI talent and technology to overseas firms.

Following the regulatory block, Manus disentangled itself from Meta. Early investors stepped in to repurchase shares at a valuation near $2 billion, effectively buying the company back. As part of the separation, the firm informed its users in August that they would need to export and back up their data, since data generated after the proposed acquisition had to be deleted to satisfy jurisdictional compliance requirements. By September, Manus announced that it had resumed independent operations, with its founding team remaining at the helm.

The current fundraising effort signals confidence among Chinese and international capital that Manus can continue to compete with global AI players such as OpenAI, Lovable and Replit. Its product suite, ranging from conversational chatbots to “vibe-coding” tools that help users build applications, design assets and generate video, targets both enterprise and consumer markets. For founders in the AI space, Manus’s experience underscores the delicate balance between rapid growth, cross-border partnerships and the regulatory environment in China.

Looking ahead, the company’s ambition to list in Hong Kong will require navigating both domestic policy scrutiny and the expectations of a public market that is still assessing the long-term viability of AI services. Whether the $500 million round materializes at the proposed valuation will likely hinge on the depth of investor belief in Manus’s ability to sustain its revenue trajectory and expand its product ecosystem without the backing of a major Western tech partner. The outcome will offer a bellwether for other Chinese AI startups seeking capital while operating under heightened regulatory oversight.