Technology Author：EqualOcean News Updated 2 hours ago (GMT+8)

Butterfly Effect, the China-founded company behind AI agent Manus, has completed a funding round of more than US$500 million, the company announced on October 8. Boyu Capital and IDG Capital led the round, with existing investors Tencent, HSG and ZhenFund also participating. The company did not disclose its valuation or how it plans to use the proceeds.

manus

The financing is Butterfly Effect’s first major round since Manus resumed independent operations on September 1. Earlier this year, China’s National Development and Reform Commission prohibited Meta’s proposed acquisition of Manus and required the parties to withdraw from the transaction. Butterfly Effect and Manus are China-founded, while the company’s operations later moved to Singapore.

Founded in 2022, Butterfly Effect launched Manus in March 2025 as a general-purpose AI agent that can plan and carry out multistep tasks, including research, writing and coding. The company released Manus 2.0 to overseas users on September 28 and introduced Cue, a personal agent product. It has also said it is assembling a team to develop a product for the Chinese market and is working with domestic model developers and other partners.

The round follows reports in September that Butterfly Effect was seeking to raise about US$500 million at a US$4 billion valuation. That figure was reported during fundraising talks; the completed round’s valuation has not been disclosed. The distinction matters as investors assess the company after its acquisition agreement was unwound and it returned to operating independently.

For Butterfly Effect, the new capital supports another attempt to build Manus as a standalone product business. The company now has to develop its user base and products across overseas markets while preparing a separate domestic offering. Its China-founded, Singapore-based structure also reflects the cross-border complexity facing AI companies with roots, operations and customers in different jurisdictions.

The financing signals investor interest in Manus after the Meta transaction, but the round alone does not establish how durable its business will be. Butterfly Effect has not disclosed the new funds’ allocation or detailed plans for overseas growth. Its next test will be converting attention around Manus and Cue into sustained use while operating independently.

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