Chinese artificial intelligence startup Manus is in advanced talks to raise $500 million in new funding at a valuation of $4 billion, according to people familiar with the matter cited by the Wall Street Journal. The fundraising effort comes as the company has resumed operations as a standalone business following the collapse of a planned acquisition by Meta earlier this year.

The potential funding round has drawn interest from several prominent investors, including IDG Capital, Boyu Capital, and Contemporary Amperex Technology, the Chinese battery manufacturing giant. Existing backers Tencent, HSG, and Zhenfund are also said to be participating. Beyond the immediate capital raise, Manus is reportedly exploring a corporate restructuring that could set the stage for a public listing on the Hong Kong Stock Exchange.

A Rapid Rise, a Blocked Deal, and a Complicated Unwind

Manus first attracted widespread attention after a demonstration of its AI agent technology went viral, quickly establishing the startup as one of the more closely watched names in the global AI landscape. The company relocated its team to Singapore around mid-2025, and by December of that year had announced a $2 billion acquisition agreement with Meta. At that point, Manus was reportedly generating more than $100 million in annual recurring revenue.

The deal, however, never closed. Growing concern within China about the migration of AI expertise and researchers to Western companies culminated in Beijing stepping in to block the transaction. Chinese regulators cited potential violations of export control regulations and rules governing foreign investment as grounds for their intervention.

Following the regulatory block, Manus began the process of disentangling itself from Meta. Early investors and backers reportedly stepped in to help the company repurchase its own shares, with that buyback process conducted at a valuation of roughly $2 billion - half of what the company is now targeting in its new fundraising round.

User Data Caught in the Regulatory Crossfire

The separation from Meta had direct consequences for Manus users as well. In August of this year, the company notified its user base that they would need to export and back up their own data independently. Manus explained that it was required to delete data generated after Meta's acquisition in order to meet regulatory obligations in certain jurisdictions. The notice underscored the operational and compliance complexities that accompanied the unwinding of the deal.

Back to Independence

Earlier this month, Manus confirmed that it had fully resumed operations as an independent company. The startup indicated that its founding team would remain at the helm and continue to guide the company's direction going forward. The announcement marked a significant milestone in what had been a turbulent period for the organization.

In terms of its product portfolio, Manus operates in a competitive segment of the AI industry that includes well-known players such as OpenAI, Lovable, and Replit. The company offers a conversational AI assistant alongside a suite of tools designed around the emerging concept of vibe-coding - an approach that allows users to build applications and websites through natural language instructions rather than traditional programming. Its platform also supports the creation of visual designs, presentations, and video content, as well as a browser-integrated assistant, among other capabilities.

Manus did not respond to requests for comment regarding the reported fundraising discussions or its future plans.