Chinese AI startup Manus, which earlier this year abandoned a planned merger with Meta, has resumed independent operations and is in talks to raise $500 million at an approximate $4 billion valuation, The Wall Street Journal reported, citing anonymous sources.
Potential investors and IPO plans
According to the Journal, potential participants in the financing round include IDG Capital, Boyu Capital, battery maker Contemporary Amperex Technology, and Manus’s existing backers such as Tencent, HSG and Zhenfund. The company is also reportedly considering a restructuring to prepare for a possible initial public offering in Hong Kong.
Timeline and regulatory obstacles
- Manus gained widespread attention after a demonstration of its AI agent last year. In mid‑2025 the company moved staff to Singapore.
- In December 2025 Manus announced a $2 billion acquisition agreement with Meta; at that time the startup was said to be generating more than $100 million in annual recurring revenue.
- Growing concerns in China about the migration of AI talent and researchers to the West ultimately led Beijing to block the deal, citing potential breaches of export controls and foreign investment rules.
- Since then Manus has disentangled itself from Meta. Early investors and backers reportedly helped the company repurchase its shares at an approximate $2 billion valuation.
Data handling and current status
As part of the separation from Meta, Manus informed users in August that they would need to export and back up their own data because Manus had to delete data generated after the Meta transaction in order to comply with regulatory requirements in certain jurisdictions.
The company said this month that it has resumed operating independently and that its founding team will continue to lead it.
Products and market position
Manus develops AI products and agents that are broadly similar to offerings from companies such as OpenAI, Lovable and Replit. Its services include a chatbot, vibe‑coding tools for building apps and websites, design and presentation creation, video generation, a browser assistant and other capabilities.
Response to requests
Manus did not immediately respond to requests for comment.
