Manus AI seeks $500M at $4B valuation after Meta split

Manus AI, the Chinese-founded artificial intelligence startup forced to sever ties with Meta ↘ 2.43% earlier this year, is in talks to raise $500 million at a roughly $4 billion valuation as it charts a course as an independent company, The Wall Street Journal News Corp ↘ 2.07% reported Friday.wsj

The fundraising discussions come as Manus also explores a restructuring that could lay the groundwork for an initial public offering in Hong Kong, though those plans remain at an early stage.qz

New Backers and Old Allies

Prospective investors in the round include IDG Capital, Boyu Capital, and Chinese battery giant Contemporary Amperex Technology, according to the Journal. Existing backers Tencent, HSG, and ZhenFund are also considering participating.finance.yahoo+1

Tencent emerged as Manus's largest outside investor after the company's founders and early backers repurchased Meta's shares at a roughly $2 billion valuation to unwind the deal. The new round, if completed at the reported terms, would represent a doubling of that buyback price.qz

From Meta Acquisition to Beijing's Veto

Manus, which builds AI agents capable of handling tasks like drafting research reports and producing slide decks, had been acquired by Meta in a deal announced in December 2025. But the transaction drew scrutiny from Chinese regulators concerned about losing domestic AI talent and technology to a foreign company.finance.yahoo

In April, China's National Development and Reform Commission ordered Meta to unwind the acquisition, citing unspecified laws and regulations. The ruling underscored Beijing's position that offshore incorporation — Manus is registered in Singapore — does not shield a deal when the underlying technology and talent originated in China. Co-founders Xiao Hong and Ji Yichao were required to appear before officials in Beijing and were subsequently barred from traveling abroad.qz

Charting an Independent Path

Manus announced in August that it had resumed independent operations, with its founding team continuing to lead the company. As part of the separation from Meta, data generated by users in certain jurisdictions after December 29, 2025 — the day the acquisition closed — was slated for deletion to comply with regulatory requirements.finance.yahoo+1

The company was said to be generating annual recurring revenue of more than $100 million at the time of the Meta deal. Manus did not respond to requests for comment.qz+1