Manus AI, Backed By Tencent And HongShan, Lands $75M Funding, Claims To Outperform OpenAI's Deep Research
The round catapults the company's valuation to nearly $500 million and positions it as a formidable contender in the global race to build truly autonomous AI agents, according to Bloomberg.
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Manus, developed by the company Butterfly Effect, made waves in March after unveiling a general-purpose AI agent that handles resume screening, trip planning, and stock analysis with minimal user input. The company claims its system outperforms OpenAI's recently launched Deep Research in key areas of functionality, writes DataCamp.
The buzz grew fast after a slick demo video went viral online, prompting a surge of interest and a waiting list for limited access. The hype triggered comparisons to DeepSeek, another Chinese AI firm that shocked Silicon Valley earlier this year with a highly capable, cost-effective language model.
Co-founder and Chief Scientist Yichao "Peak" Ji described Manus in the demo video as a revolutionary leap forward in AI autonomy. "This isn't just another chatbot or workflow tool. It's a truly autonomous agent that bridges the gap between conception and execution," Ji said.
The AI agent was designed with a multistep problem-solving framework that executes tasks, troubleshoots issues, and asks for new input only when necessary. This level of autonomy is what sets Manus apart from many of its U.S. and Chinese competitors, which still require significant human supervision.
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Manus AI's growing momentum has drawn continued attention from some of the most influential investors in both China and Silicon Valley. The startup had previously raised more than $10 million from many of the same backers, according to Next Big Future.
This growing list of high-profile investors signals confidence in Butterfly Effect's long-term potential. Benchmark's decision to lead the round places Manus among a select group of emerging AI companies with support from top-tier U.S. venture capitalists.
The funding will help Butterfly Effect expand its flagship product into markets like the U.S., Japan, and the Middle East, according to people familiar with the company's plans, Bloomberg reported. The deal also reflects a growing belief among global investors that China is rapidly narrowing the gap with the U.S. in advanced AI technologies.Manus' ambitions stretch far beyond the Chinese market. The company is signaling global aspirations and a willingness to go head-to-head with players like OpenAI, Anthropic and Google, according to India's Business Standard.
The company has already introduced a paid subscription model with a $39/month base plan and a $199/month upgraded version, comparable to OpenAI's ChatGPT Pro. While the pricing is seen as aggressive for a product still in testing, early adopters remain intrigued.
Despite the hype, Manus AI has faced some early criticism. According to Business Insider, some users say the product still feels unfinished and occasionally crashes, while others have flagged delays in task execution. Experts suggest these flaws may be tied to the company's limited computing resources during its early scaling phase.
Still, the consensus is that Manus is punching well above its weight, and that's precisely what has investors excited.
Manus AI's rise adds to growing questions about the United States' hold on AI innovation. With China now producing serious contenders across multiple AI categories, the technology race is evolving fast.
Butterfly Effect's Manus may be the latest sign that the age of AI dominance is no longer confined to Silicon Valley. Backed by new funding and global ambitions, Manus is a startup worth watching.
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This article Manus AI, Backed By Tencent And HongShan, Lands $75M Funding, Claims To Outperform OpenAI's Deep Research originally appeared on Benzinga.com
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