Butterfly Effect, the parent company of Singapore-headquartered artificial intelligence agent developer Manus, has completed a funding round of more than $500 million as it returns to independent operations after unwinding its acquisition by Meta.
The round was co-led by Boyu Capital and IDG Capital, according to Reuters. Existing investors Tencent, HSG and ZhenFund also participated, according to a company announcement reported by TechNode. Butterfly Effect did not disclose its valuation or how it plans to use the proceeds.
A major financing after an unusual separation
The financing gives Manus fresh capital following the reversal of Meta’s $2 billion-plus acquisition of the company. The transaction had been announced in late 2025, but Chinese authorities ordered the parties to unwind it in April 2026 amid scrutiny of foreign investment in advanced artificial intelligence technology.
Manus said in August that it would resume operating independently. As part of the separation, the company also announced plans to delete certain user data generated after the Meta transaction, while allowing affected users to back up and later restore their information.
The latest round confirms that Manus has secured new backing after the separation. Boyu Capital and IDG Capital are new lead investors in the financing, while the participation of existing shareholders provides continuity from the company’s earlier ownership structure.
Neither Butterfly Effect nor the investors disclosed the round’s exact size beyond saying it exceeded $500 million. They also did not provide a post-money valuation, ownership breakdown or timetable for deploying the capital.
Manus rebuilds as an independent AI company
Manus develops general-purpose AI agents designed to carry out multi-step tasks such as research and workflow automation with limited user intervention. The company’s official website describes the platform as an action engine that can execute tasks and automate workflows rather than only return answers.
The startup was founded in China and later relocated its headquarters to Singapore. Its cross-border structure and the proposed sale to Meta placed the company at the center of regulatory tensions surrounding artificial intelligence intellectual property, talent and foreign ownership.
China’s National Development and Reform Commission said in April that it would prohibit foreign investment in Manus and require the acquisition to be withdrawn. The decision forced the company and its shareholders to reverse a transaction that had already been completed.
In August, TNGlobal reported that Manus would return to independent operations and carry out data-related changes required by regulators. That separation is now followed by one of the larger recent financing rounds for an Asia-linked artificial intelligence startup.
Investors back the next independent phase
The involvement of Boyu Capital and IDG Capital broadens Manus’s investor base while retaining support from earlier backers. The company has not said whether the new capital will fund product development, computing infrastructure, hiring or geographic expansion.
The lack of a disclosed valuation also makes it difficult to compare the financing directly with the value assigned to Manus in the Meta transaction. For now, the confirmed facts are limited to the round’s minimum size, its lead investors and the participation of existing shareholders.
The new financing nevertheless marks a clear transition point. Manus has moved from a blocked acquisition and mandatory separation to a newly capitalized independent company, while remaining headquartered in Singapore and serving a global market for AI agents.
Singapore-based Manus AI to leave Meta as China blocks Meta’s $2B acquisition