Manus, the Chinese AI startup that went viral last year with a demo of its AI agent, is in discussions to raise $500 million at a $4 billion valuation now that it has resumed operations as an independent company, according to a TechCrunch report citing The Wall Street Journal and anonymous sources. The fundraising effort matters because it would mark a sharp re-rating from the roughly $2 billion valuation at which early investors and backers reportedly helped the company buy back its shares after its planned acquisition by Meta fell apart. A successful round at the reported target would signal that investors are willing to price Manus as a standalone AI platform despite the regulatory and operational disruption of the past year.
The reported mechanics of the deal remain preliminary. Potential investors in the round include IDG Capital, Boyu Capital, and battery maker Contemporary Amperex Technology, as well as existing backers Tencent, HSG, and ZhenFund, the Journal reported. Manus is also said to be considering a restructuring exercise to prepare for an IPO in Hong Kong. The company had relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition deal with Meta that December. At the time, Manus was said to be pulling in annual recurring revenue of over $100 million. The dossier does not specify the round's structure, use of proceeds, or whether the $500 million target is a primary raise, secondary component, or a mix.
The evidence base is narrow: a single TechCrunch article read in full, which itself relies on The Wall Street Journal's reporting and anonymous sources. The dossier contains no direct confirmation from Manus, and TechCrunch noted that Manus did not immediately return a request for comment. The reported $4 billion valuation and $500 million raise are uncorroborated within the available material. The $2 billion buyback valuation and the over $100 million annual recurring revenue figure are also attributed to prior reporting rather than independently verified in the source. This single-source, secondary-reporting context means the analysis should treat the figures as directional and subject to change.
The sector implications are significant for Chinese AI startups navigating cross-border deal risk. Beijing blocked the Meta deal citing potential violations of export controls and foreign investment rules, reflecting intensifying worries in China over losing AI talent and researchers to the West. Manus has since been untangling itself from the American social media giant. As part of its separation from Meta, the company told users in August that they would have to export and back up their own data because it had to delete data generated following Meta's acquisition to comply with regulatory requirements in specific jurisdictions. The company this month said it has resumed independent operations and that its founding team will continue to lead it. A $4 billion valuation target would imply that Manus and its backers believe the company can rebuild momentum as a domestic champion in AI agents and coding tools, competing with offerings from companies like OpenAI, Lovable, and Replit.
Key limitations and watch items include whether the reported investor group commits at the stated valuation, whether the Hong Kong IPO restructuring proceeds, and whether Manus can restore user trust after the data deletion episode. The dossier does not provide current revenue, growth, or customer metrics beyond the earlier $100 million annual recurring revenue figure. It also does not clarify the legal or financial terms of the Meta separation beyond the reported $2 billion buyback. Future reporting should confirm the round's closing, any regulatory approvals, and whether the company's independent product roadmap can sustain a valuation roughly double the buyback level.