Hello China Tech reported on October 12 that Manus, an AI agent startup, raised more than $500 million. Its parent, Butterfly Effect, announced the round on October 8. Boyu Capital and IDG Capital led it; Tencent, HSG and ZhenFund joined. In April, a Chinese state review office banned the foreign purchase of Manus and ordered it undone. Meta had agreed in December 2025 to pay over $2 billion.
The April notice gave no reason or legal basis and did not name Meta. Butterfly Effect gave no valuation. A person familiar with the company told Lianhe Zaobao that headquarters remain in Singapore. Caijing reported in August, citing two people, that Tencent held about 20% before this round, with the founders likely in control. Ownership after the round is not public. Manus listed 17 Beijing jobs the same day. Reuters, citing a source, said a Hong Kong listing would not start before 2027. The sources do not say what structure the review required, or whether regulators approved later steps.
Hello China Tech calls this setup a likely template for other Chinese-founded AI startups abroad. Stefanie Kam of Singapore's S. Rajaratnam School of International Studies said that remains to be seen. For teams buying AI tools from such firms, ownership and base can change after a blocked deal.