Chinese Startup Manus AI Raises $75M, Boosts Valuation to $500M

2 mins mins

Key Points:

Butterfly Effect raises $75 million in funding.
Manus AI’s valuation hits $500 million.
Expansion plans into US, Japan, and Middle East.

manus-ai-secures-75m-valuation-hits-500m — Manus AI Secures $75M, Valuation Hits $500M

In a significant financial move, the Chinese startup Butterfly Effect, known for developing Manus AI, raised $75 million in a funding round led by U.S. venture capital firm Benchmark.

This funding significantly increases Manus AI’s valuation fivefold to nearly $500 million, enabling expansion into the United States, Japan, and the Middle East.

Market Reaction to Expansion Plans and Technical Concerns

Butterfly Effect, the company behind Manus AI, just completed a $75 million funding round led by Benchmark. The funding round also saw participation from existing investors, boosting the startup’s valuation to nearly $500 million. An expansion is planned into key international markets including the United States, Japan, and the Middle East.

Chief Scientist, Yichao “Peak” Ji, emphasizes that Manus isn’t just another tool but represents a significant breakthrough in AI capabilities and human-machine collaboration. The AI can perform various tasks autonomously such as resume screening and itinerary planning. Butterfly Effect began monetizing this product through a subscription model, drawing 2.6 million users on a waiting list.

“Manus isn’t just another chatbot or workflow. It’s a completely autonomous agent that bridges the gap between conception and execution […] We see it as the next paradigm of human-machine collaboration.” — Yichao “Peak” Ji, Chief Scientist, Butterfly Effect

Market reactions have been generally positive. Victor Mustar, Head of Product at Hugging Face, described Manus as the “most impressive AI tool [he’s] ever tried.” However, some skepticism about its robustness has surfaced, noting potential overreliance on models from Claude and Alibaba’s Qwen.