Manus Parent Butterfly Effect Closes Over $500M in First Funding Since Collapsed $2B Meta Deal
aiinsider ·
Butterfly Effect, the parent company of Chinese AI laboratory Manus, has secured over $500 million in new funding. This investment round marks the company's first capital raise since Meta was forced to abandon its planned $2 billion acquisition of Manus. The funding was led by Boyu Capital and IDG Capital, with participation from existing shareholders such as Tencent, HSG (formerly Sequoia China), and ZhenFund. Manus had previously moved its operations to Singapore in mid-2025 and agreed to the Meta deal while generating significant annual revenue. However, Chinese authorities ordered the unwinding of the acquisition in April due to concerns about losing AI talent to the West. Following the collapse of the deal, Manus resumed independent operations in August and recently launched its updated Manus 2.0 platform alongside a new standalone app called Cue. The company continues to expand its hiring efforts globally and is reportedly considering a potential listing in Hong Kong.
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