Chinese artificial intelligence startup Manus is in talks to raise $500 million at a $4 billion valuation as it returns to operating independently after Beijing blocked its planned merger with Meta. According to a report by The Wall Street Journal citing anonymous sources, potential investors include IDG Capital, Boyu Capital, Contemporary Amperex Technology, as well as existing backers Tencent, HSG and ZhenFund. The company is also reportedly considering a restructuring to prepare for an initial public offering in Hong Kong.
Manus drew attention last year with a demo of its artificial intelligence agent, moved its employees to Singapore in mid-2025 and announced a $2 billion acquisition deal with Meta in December. At the time, its annual recurring revenue was reported to be more than $100 million. However, after concerns in China about artificial intelligence capabilities being lost to the West, Beijing halted the deal, citing potential violations of export controls and foreign investment rules.
During the process of separating from Meta, the company bought back its shares at a valuation of approximately $2 billion with the support of its early investors. It asked users to export and back up their data, stating that they would have to delete data created after Meta’s acquisition due to regulatory requirements. Manus’s founding team will continue to run the company. The startup offers tools for developing chatbots, applications and websites, as well as for design, presentations and video production.
Why it matters
The Manus example shows that the capital and ownership decisions of artificial intelligence companies in China are shaped not only by commercial considerations, but also by export controls and foreign investment rules. The separation from Meta points to a process that increases the influence of early investors while reorganizing the company’s financing structure and preparations for a potential public offering. For users, the most tangible consequence is the uncertainty surrounding the preservation of existing data due to regulatory requirements, as well as the obligation to export it. For customers and employees using the company’s tools, the fact that the founding team will continue to manage the company leaves open the question of the framework under which the products and operations will continue; the outcome of the investment talks does not directly answer these issues.