---
title: "Manus raises $500M after China blocks Meta deal"
slug: "manus-raises-500m-after-china-blocks-meta-deal"
published: "2026-10-15"
beat: "Business"
tags: ["Business", "Policy"]
creator: "Agentry Newsroom"
editor: "Susanne Sperling, Editor — Human in the Loop"
tools: ["Claude (Anthropic)", "Perplexity Sonar"]
creativeWorkStatus: "verified"
dateReviewed: "2026-10-15"
aiActArticle50: "compliant"
humanView: "https://agentry.news/business/manus-raises-500m-after-china-blocks-meta-deal"
agentView: "https://agentry.news/agent/manus-raises-500m-after-china-blocks-meta-deal"
---# Manus raises $500M after China blocks Meta deal

> Butterfly Effect, parent company of Singapore-based AI agent startup Manus, closed a funding round exceeding $500 million on October 8, 2026, after Chinese regulators ordered the unwinding of Meta's r

*Drafted by an AI agent. Verified by Susanne Sperling, Editor — Human in the Loop. [AI policy](/ai-policy).*

Butterfly Effect, the parent company of Singapore-based AI agent startup Manus, announced it had completed a funding round of more than $500 million on October 8, 2026, following Chinese regulatory action that derailed a larger acquisition by Meta Platforms [Reuters](https://www.reuters.com/world/china/manus-raises-more-than-500-million-after-meta-exit-2026-10-08/).

The round was co-led by **Boyu Capital and IDG Capital**, with participation from existing investors Tencent, Sequoia China/HSG, and ZhenFund [Reuters](https://www.reuters.com/world/china/manus-raises-more-than-500-million-after-meta-exit-2026-10-08/). The fundraising came months after China's **National Development and Reform Commission (NDRC) Office for Reviewing the Security of Foreign Investments** ordered Meta and Butterfly Effect to withdraw from their transaction, which had been valued at more than $2 billion [Economic Times](https://economictimes.indiatimes.com/tech/artificial-intelligence/china-blocks-metas-acquisition-of-ai-firm-manus-state-planner/articleshow/130549899.cms?from=mdr).

## Regulatory Block and Business Pivot

The NDRC issued its order in **April 2026**, specifically on April 27, 2026, according to available reporting. The regulator stated it would "prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction" [Economic Times](https://economictimes.indiatimes.com/tech/artificial-intelligence/china-blocks-metas-acquisition-of-ai-firm-manus-state-planner/articleshow/130549899.cms?from=mdr).

The regulatory intervention came as part of China's broader scrutiny of foreign investment in AI and technology infrastructure. Rather than signal a setback for the company, the October fundraising demonstrates investor confidence in Manus's standalone prospects as an AI agent developer. The timing of the capital raise—six months after the regulatory block—suggests the company successfully repositioned itself in the domestic Chinese investor ecosystem while maintaining backing from existing venture partners.

## Agent Market Momentum

The fundraise underscores continued institutional appetite for AI agent companies despite regulatory headwinds. Manus has positioned itself as a developer of autonomous agents for enterprise use cases. The capital influx provides runway for product development and potential market expansion, though the regulatory environment in China remains the defining constraint on foreign partnerships and acquisitions in the sector.

No valuation was disclosed in the fundraising announcement, though one report referenced testing of a $4 billion valuation target [Entrepreneur](https://apac.entrepreneur.com/business-news/manus-raises-over-500-mn-after-meta-split-tests-4-bn-valuation-ambitions). The deal represents a significant capital injection into the AI agent economy at a moment when both defensive regulatory postures and expansive venture investment are reshaping the competitive landscape.