Manus Raises $500M After China Blocks Meta Deal
China blocks Meta’s $2B acquisition of AI startup Manus, prompting $500M funding round.
In brief
China blocks Meta’s $2B acquisition of AI startup Manus, prompting $500M funding round. China blocked Meta’s $2 billion acquisition of AI startup Manus, leading to a $500 million funding round led by Boyu Capital and IDG Capital. Originally reported by Pymnts.
Manus Funding Round
Butterfly Effect, the parent company of AI startup Manus, raised $500 million in a funding round led by Boyu Capital and IDG Capital.
China Blocks Meta Acquisition
China’s National Development and Reform Commission prohibited Meta’s $2 billion acquisition of Manus in April 2026, requiring withdrawal of the transaction.
“prohibit foreign investment in the Manus project”
Manus Returns to Independence
Manus announced it would resume independent operations with the founding team leading the company after separating from Meta.
Data Compliance After Separation
Manus must delete user data generated after the acquisition to comply with regulatory requirements in certain regions.
What to remember
China blocked Meta’s $2 billion acquisition of AI startup Manus, leading to a $500 million funding round led by Boyu Capital and IDG Capital.
