The Chinese startup Manus AI has successfully raised funds in a financing round led by US venture capital firm Benchmark, enabling them to investigate the potential of AI agents to automate daily tasks.
This funding round, which totaled $75 million, significantly increased the company’s valuation to nearly $500 million, according to sources familiar with the situation. The parent company, Butterfly Effect, plans to use this investment to broaden its services into markets such as the US, Japan, and the Middle East, as per the sources who requested anonymity.
In March, Manus showcased a general AI agent designed to handle tasks like resume screening, trip planning, and stock analysis based on simple commands. The company claimed that its service outperformed OpenAI’s Deep Research in certain areas. Since then, various companies, including ByteDance Ltd. and Baidu Inc., have launched their own competing AI platforms. Representatives from Manus chose not to comment, and Benchmark did not respond to inquiries.
Although AI agents require some guidance, Manus co-founder and chief scientist Ji Yichao stated that their product is ‘truly autonomous.’ A polished video demonstration from the company gained significant attention, leading to a rush for a limited number of access cores and drawing comparisons to DeepSeek, a Chinese startup that made waves in Silicon Valley earlier this year with its affordable yet effective AI model.
Similar to DeepSeek, Manus has raised concerns about the US’s dominance in artificial intelligence, particularly in a sector that American tech firms view as a crucial investment opportunity. User feedback on Manus was varied: while some hailed it as revolutionary, others felt it was incomplete. Last month, the startup launched a subscription model priced at $39 per month, with a $199 premium option, similar to OpenAI’s ChatGPT Pro, although the pricing seems quite steep for a service still in testing.
Manus has secured over $10 million in prior funding, as reported by various media outlets in China, including investments from Tencent Holdings Ltd. and notable venture capital firms like ZhenFund and HSG, previously known as Sequoia China.
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