Manus Parent Butterfly Effect Raises $500M Following Blocked Meta Deal
Butterfly Effect, parent of Manus, raised over $500M from investors like Tencent after a blocked Meta acquisition, targeting a Hong Kong IPO.
Butterfly Effect, the parent company of Manus, has successfully raised over $500 million from major investment funds and Asian corporate giants, including Tencent, Sequoia China, Boyu Capital, and IDG Capital.
The funding round follows the collapse of a massive acquisition deal in which American tech giant Meta was set to purchase Manus for approximately $2 billion. The deal was blocked in April by authorities in Beijing amid stringent regulatory crackdowns on American ownership and investments in advanced artificial intelligence technologies developed in China. Subsequently, in August, Manus officially announced its return to operations as an independent company separate from Meta.
The Manus startup develops advanced AI agents capable of executing complex tasks such as research and workflow automation autonomously with minimal human intervention. The company's annualized revenue run rate has surged fivefold, jumping from $100 million at the time of the acquisition attempt to approximately $500 million.
As part of its separation from Meta, the company was required to wipe specific user data. It is currently establishing a joint venture structure in China to pave the way for an initial public offering (IPO) on the Hong Kong Stock Exchange.
This strategic move highlights a critical frontline in the geopolitical struggle between the United States and China for dominance in advanced artificial intelligence technologies.
