Manus AI, the rapidly emerging Chinese startup, has raised $75 million in new funding with Benchmark taking the lead and participation from Tencent, ZhenFund, and HongShan Capital.
This investment round has propelled the company’s valuation to nearly $500 million, establishing it as a serious competitor in the worldwide competition to develop fully autonomous AI agents, as reported by Bloomberg.
A New Player Emerges in Agentic AI
Developed by Butterfly Effect, Manus generated significant attention in March with its debut as a general-purpose AI agent capable of handling resume screening, travel planning, and stock analysis with minimal user guidance. According to DataCamp, the company asserts its system surpasses OpenAI’s Deep Research in critical functional areas.
The excitement escalated after a polished demo video went viral, sparking massive demand and a growing waitlist for access. The buzz has drawn comparisons to DeepSeek, another Chinese AI firm that stunned Silicon Valley earlier this year with its high-performance, cost-efficient language model.
In the demo, Yichao “Peak” Ji, co-founder and Chief Scientist, positioned Manus as a paradigm shift in AI autonomy:
“This isn’t just another chatbot or workflow tool. It’s a truly autonomous agent that bridges the gap between idea and execution.”
Manus operates on a multi-step problem-solving framework, autonomously executing tasks, resolving issues, and requesting user input only when essential. This degree of independence distinguishes it from many U.S. and Chinese competitors that still rely heavily on human oversight.
Backed by Titans: Who’s Funding Manus AI?
Manus AI’s rapid ascent continues to attract major investors from both China and Silicon Valley. According to Next Big Future, the startup had already secured over $10 million from many of these same backers in earlier funding rounds.
This impressive roster of high-profile supporters demonstrates strong belief in Butterfly Effect’s long-term prospects. With Benchmark leading the latest round, Manus joins an elite group of AI startups backed by top-tier U.S. venture capital firms.
Per Bloomberg sources familiar with the company’s strategy, the new capital will fuel global expansion into key markets including:
✓ United States
✓ Japan
✓ Middle East
The investment underscores a widening consensus among international investors that China is quickly closing the gap with the U.S. in cutting-edge AI development.
Expanding the Battle Beyond China
Manus’ ambitions extend well beyond its domestic market. As reported by India’s Business Standard, the company is demonstrating global aspirations and a readiness to compete directly with industry leaders like OpenAI, Anthropic, and Google.
The startup has already rolled out a paid subscription model, offering:
- $39/month base plan
- $199/month premium tier (positioned similarly to OpenAI’s ChatGPT Pro)
While the pricing appears ambitious for a product still in testing, early adopters remain captivated by its potential.
However, Manus AI has encountered some initial critiques. Business Insider notes user reports of:
✓ An unpolished feel in certain functions
✓ Occasional system crashes
✓ Delays in task completion
Industry analysts attribute these issues to the company’s limited computing infrastructure during this early growth stage.
Yet, despite these hurdles, the prevailing view is that Manus is outperforming expectations—a key factor driving investor enthusiasm.
A Shift in the AI Power Balance
The emergence of Manus AI is fueling broader questions about U.S. dominance in AI innovation. As China produces credible competitors across multiple AI sectors, the global technology race is accelerating.
Butterfly Effect’s Manus may signal that the era of Silicon Valley’s unquestioned AI leadership is ending. With fresh funding and international aspirations, Manus has positioned itself as a startup to watch closely.