Butterfly Effect, the parent company of AI startup Manus, raised more than $500 million in new funding after resuming independent operations following the unwinding of Meta’s planned acquisition of the company, according to Reuters. The financing was co-led by Boyu Capital and IDG Capital.
Existing investors Tencent, HSG, and ZhenFund also participated in the round.
The fundraising comes after Manus separated from Meta following regulatory scrutiny surrounding the social media company’s proposed acquisition.
Meta had agreed to acquire Manus in a transaction valued at more than $2 billion.
In April 2026, Chinese authorities ordered Meta to unwind the acquisition amid heightened scrutiny of U.S. investment in Chinese startups developing advanced artificial intelligence technologies.
Manus subsequently said in August that it would resume operating independently.
As part of its separation from Meta, the company also said it would delete certain user data.
Manus develops general-purpose AI agents designed to autonomously perform tasks such as research and workflow automation with limited human input.
The company has experienced rapid commercial growth.
According to The Information, Manus’ annualized revenue run rate had reached approximately $500 million by June 2026.
That represented a substantial increase from roughly $100 million at the time Meta agreed to acquire the company.
The company has also been exploring potential structures that could support its longer-term capital markets strategy.
The Information reported that Manus had considered establishing a joint venture incorporated in China, which could potentially help pave the way for a future Hong Kong listing.
However, Manus is not expected to begin a Hong Kong initial public offering process until at least 2027, according to a person familiar with the matter cited by Reuters.
The latest funding round gives Manus additional capital to continue expanding independently after the collapse of the Meta transaction.
Its renewed independence also comes at a time when competition among AI agent developers is intensifying, with companies seeking to build systems capable of completing increasingly complex tasks with less direct human supervision.
The more than $500 million financing positions Manus to continue investing in its AI agent technology, infrastructure, and commercial expansion while operating outside Meta.
