Chinese AI Startup Manus Secures $75M in Funding, Achieving a $500M Valuation
Manus AI’s Major Funding Boost
Manus AI, a Chinese startup that is part of the Butterfly Effect company, has recently secured a remarkable $75 million in funding led by Benchmark, a prominent US venture capital firm known for supporting tech giants like Uber and Twitter. This new funding round has dramatically increased Manus AI’s valuation to approximately $500 million, a significant leap from its previous value of just $10 million. The investment reflects the growing confidence in Manus AI’s potential in the fast-evolving artificial intelligence sector.
What Manus AI Offers
Manus AI specializes in creating advanced general-purpose AI agents, often referred to as digital personal assistants. These AI agents can handle a wide array of everyday tasks, from screening resumes and making travel reservations to analyzing stock market trends, all based on simple user inputs. This versatility positions Manus AI to potentially disrupt multiple industries by improving efficiency and productivity for users.
Investor Confidence and Market Potential
This funding round not only attracted Benchmark but also saw participation from existing investors, including Tencent Holdings Ltd. and HSG (formerly Sequoia China). The mix of both Chinese and international investors highlights the widespread belief in Manus AI’s capabilities and market potential. A spokesperson from Butterfly Effect stated, “This investment marks a significant step for Manus AI as we advance our AI agent technology. With support from leading investors like Benchmark, we are well-positioned for global expansion.”
Global Ambitions and Competitive Landscape
Despite facing mixed reviews early on, Manus AI aims to compete on the global stage, particularly against established players like OpenAI. In March 2025, the company showcased its AI capabilities, reportedly outperforming OpenAI’s freshly launched Deep Research AI in several areas. With the newly raised capital, Manus AI plans to target major overseas markets, including the United States, Japan, and the Middle East, further establishing itself as a competitive player in the AI agent space.
Subscription Tiers and Market Positioning
Manus AI has already begun monetizing its offerings through subscription plans. Users can access basic features at a monthly fee of $39, while a premium plan is available for $199 per month. This pricing strategy positions Manus AI favorably against competitors like OpenAI’s ChatGPT Pro, especially as it is still in the beta testing phase. The pricing strategy indicates Manus AI’s ambition to attract a broad user base while maintaining competitive offerings in the market.
Mixed User Feedback and Future Improvements
Although there is considerable excitement surrounding Manus AI, the early feedback from users has been inconsistent. While many users have praised the AI for its innovative features, others have experienced issues with bugs and incomplete functionalities. Addressing these concerns will be essential for Manus AI as it seeks to enhance its reliability and appeal to a global audience. An industry expert noted that while the initial responses have been generally positive, significant work remains to resolve performance issues as the company scales its operations internationally.
Benchmark’s Strategic Investment
Benchmark’s involvement in this funding round holds considerable significance, signaling a strong endorsement from one of Silicon Valley’s most respected venture capital firms. This investment illustrates a growing trend among American investors to back promising AI startups, regardless of their geographic location, particularly those that can innovate and disrupt the current market landscape. As Manus AI continues to refine its technology and expand its global footprint, the tech community will be closely monitoring its progress. The outcomes of its efforts could have significant implications for the international dynamics surrounding collaboration and competition in the rapidly developing realm of artificial intelligence.
