Manus parent Butterfly Effect says it raised over $500 million, funding the AI agent company’s return to independent operations after its Meta acquisition was called off.
Butterfly Effect, the parent company of AI agent startup Manus, has raised more than $500 million, TechCrunch reported October 8. The company disclosed the round in a WeChat post, making it the first funding since Meta’s proposed $2 billion acquisition was called off. Boyu Capital and IDG Capital led the investment, with existing shareholders including Tencent, HSG and ZhenFund also participating.
The financing gives Manus fresh backing as it resumes independent growth and hiring in China and abroad. The company did not disclose a valuation. TechCrunch reported that Manus had previously been said to be discussing a $500 million raise at a $4 billion valuation, but that figure was not confirmed as a term of this round.
Manus drew attention with demonstrations of an AI agent designed to carry out multistep tasks. Its product portfolio now includes a chatbot and tools for building apps and websites, creating designs and presentations, and generating video. The company has also introduced Manus 2.0 and Cue, a separate product that gives personal agents access to tools such as email, phone numbers, digital wallets and computers, with payments subject to user-set limits.
The company’s corporate path has been unusually complex. Manus moved staff to Singapore in 2025 and later agreed to be acquired by Meta. Chinese authorities ordered the deal unwound in April amid concerns about AI talent moving overseas. Manus resumed independent operations in August; TechCrunch reported that the separation also required deletion of some user data.
The new capital is a notable test of investor appetite for agent startups after a high-profile acquisition failed to close. Funding alone does not establish how reliably or widely an agent can perform real-world tasks. Manus’s next challenge will be demonstrating durable product adoption and managing the security, privacy and oversight questions raised by agents operating across online services.