Manus in talks to raise $500M at a $4B valuation after breaking off Meta merger

Chinese AI agent startup Manus is in active discussions to raise $500 million at a $4 billion valuation, according to a report citing anonymous sources. The Wall Street Journal reported the fundraising plans as Manus resumes independent operations following the collapse of its planned $2 billion acquisition by Meta.

Potential investors in the round include IDG Capital, Boyu Capital, and battery maker Contemporary Amperex Technology (CATL), along with existing backers Tencent, HSG, and ZhenFund, the Journal reported. Manus is also considering a restructuring exercise to prepare for a potential initial public offering in Hong Kong.

Manus, which gained attention after a viral demo of its AI agent last year, relocated its staff to Singapore in mid-2025 before announcing the $2 billion acquisition deal with Meta in December 2025. At the time of the proposed acquisition, Manus reported annual recurring revenue exceeding $100 million.

Regulatory concerns in China over AI talent outflows and compliance risks led Beijing to block the Meta deal, citing potential violations of export controls and foreign investment rules. Following the collapse of the merger, Manus and its early investors reportedly executed a share buyback at a valuation of about $2 billion to complete the separation from Meta.

As part of its separation, Manus notified users in August that they would need to export and back up their own data, stating it had to delete data generated after the proposed Meta acquisition to comply with regulatory requirements in specific jurisdictions. The company confirmed this month that it has resumed independent operations and that its founding team will continue to lead the company.

Manus develops AI products and agents comparable to those offered by OpenAI, Lovable, and Replit, including a chatbot and vibe-coding tools that enable users to build apps and websites, create designs and presentations, and generate video content.