Butterfly Effect Raises $500 Million After China Forced Meta to Scrap $2 Billion Manus Deal
Updated
Updated · TechCrunch · Oct 8
Butterfly Effect Raises $500 Million After China Forced Meta to Scrap $2 Billion Manus Deal
2 articles · Updated · TechCrunch · Oct 8
Summary
Butterfly Effect said it raised more than $500 million in its first funding round since Chinese authorities unwound Meta’s planned $2 billion acquisition of Manus in April.
Boyu Capital and IDG Capital led the round, with existing backers including Tencent, HSG and ZhenFund joining, giving the AI lab fresh capital to keep expanding independently.
Manus said it will continue hiring in China and overseas; Bloomberg had reported last month that it was seeking $500 million at a $4 billion valuation, though the company did not disclose one.
The startup moved staff to Singapore in mid-2025, resumed standalone operations in August after the Meta split, and is reportedly weighing a Hong Kong IPO as China tightens scrutiny over AI talent leaving for the West.