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Chinese AI startup Manus is reportedly close to completing a $500 million funding round that would double its valuation to $4 billion, making it the most valuable startup in China’s AI agent sector. This marks Manus’s first fundraising effort since dissolving its acquisition relationship with Meta Platforms and resuming independent operations. Existing investors include Tencent, HSG, and ZhenFund, with market sources indicating Tencent is in talks to become the largest shareholder. The round reflects strong capital market expectations for China’s AI agent space, and a $4 billion valuation could pave the way for a Hong Kong listing.
Key Elements
Chinese artificial intelligence startup Manus is reportedly on the verge of completing a $500 million funding round, which would double the company’s valuation to $4 billion and catapult it to become the most valuable startup in China’s AI agent sector.
According to Bloomberg, multiple people familiar with the matter said the funding negotiations have entered their final stages, though deal terms could still change and the identity of new investors remains unclear. This marks Manus’s first external fundraising since dissolving its acquisition relationship with Meta Platforms (META) and resuming independent operations.
Manus’s existing investor roster includes Tencent Holdings (0700.HK), HSG (HongShan), and ZhenFund. Market sources indicate Tencent is in discussions to become Manus’s largest shareholder. Representatives for Manus, Tencent, HSG, and ZhenFund all declined to comment on the matter.
Restructuring After Regulatory Intervention
Manus’s partnership with Meta came to an end under pressure from Chinese regulators. Meta had previously agreed to acquire the startup, which had surpassed $100 million in annualized revenue, but Beijing authorities blocked the deal over concerns about technology flowing to a geopolitical rival.
The two companies completed their operational separation in May of this year and ceased data sharing. Manus announced earlier this month that it had resumed independent operations, with the founding team continuing to lead the company’s development of generative AI agents for global users.
Valuation Race and Competitive Landscape
A $4 billion valuation would further cement Manus’s leadership position among Chinese AI agent developers and could even pave the way for a Hong Kong listing. Competitor Evoken — the developer of AI design agent Lovart — is reportedly also raising capital at a $3 billion valuation.
However, Manus still faces competitive pressure from broader foundation model providers. Reports indicate that products such as Moonshot’s Kimi and Anthropic’s Claude are steadily improving their ability to handle general desktop tasks. Manus itself has not trained its own foundation model from scratch, placing it at a relative disadvantage in terms of technological autonomy.
For investors, Manus’s doubled valuation reflects strong capital market expectations for China’s AI agent sector, particularly as domestic capital and strategic investors play an increasingly important role after regulatory factors blocked foreign acquisitions. If Tencent ultimately becomes the largest shareholder, Manus’s resource integration capabilities and business expansion direction will warrant close attention.
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