Chinese AI Startup Behind Manus Raises $75M, Targets Global Expansion

Chinese AI startup Butterfly Effect, the creator of Manus AI, has raised $75 million in a funding round led by U.S.-based venture capital firm Benchmark, according to a Bloomberg report citing sources familiar with the matter. The funding round, which also saw participation from existing backers, has reportedly boosted the company’s valuation fivefold to nearly $500 million.

Butterfly Effect aims to use the fresh capital to fuel international expansion, targeting key markets such as the United States, Japan, and the Middle East. The move comes as global demand intensifies for next-generation AI tools capable of automating complex digital tasks.

Manus AI attracted widespread attention in March after launching a general-purpose AI agent designed to handle a variety of everyday tasks, including resume screening, travel planning, and stock analysis. According to the company, the Manus agent outperforms OpenAI’s Deep Research tool on several benchmarks, signaling strong competitive potential in the rapidly evolving AI market.

The startup has also introduced a subscription model for its AI assistant, starting at $39 per month, appealing to individual users and professionals seeking productivity-enhancing tools.

Prior to this latest funding, Butterfly Effect had secured over $10 million from prominent investors such as Tencent, ZhenFund, and HSG, according to Chinese media reports. The rapid rise in valuation and backing from major venture firms positions the startup as a formidable new player in the global AI race.

With the AI sector experiencing explosive growth, Butterfly Effect’s Manus AI could emerge as a strong challenger to established players by offering more adaptable and efficient AI solutions tailored to real-world use cases.