Chinese AI Firm Butterfly Effect Raises $75 Million to Scale Manus AI Globally

Chinese artificial intelligence startup Butterfly Effect, the developer of Manus AI, has raised $75 million in a new funding round led by U.S.-based venture capital firm Benchmark. The fresh capital brings the company’s valuation close to $500 million, a sharp rise from its previous $100 million valuation in late 2024.

The funding will support Butterfly Effect’s plans to expand Manus AI into international markets, including the United States, Japan, and the Middle East. The company aims to advance its AI agent technology, which is designed to automate routine tasks, amid growing global interest in next-generation AI tools.

Key backers, including ZhenFund, HSG, and Tencent Holdings, participated in the $75 million funding round. The company plans to allocate the newly secured capital to expand its Manus AI platform into critical international markets, focusing on Japan, the United States, and the Middle East.

Manus AI, which gained attention after its beta launch in March 2025, has grown rapidly, with 2.6 million users joining a waiting list within weeks. The AI agent’s ability to handle complex tasks like resume screening, trip planning, and stock analysis has positioned it as a versatile tool, drawing comparisons to offerings from OpenAI and DeepSeek. The platform has also been integrated with Anthropic’s Claude AI model, allowing it to perform at a competitive level, though it comes with a cost of $2 per task.

Despite the surge in popularity, Manus faces operational challenges, particularly with scaling infrastructure. The company has experienced high operational expenses, notably from the cost per task, which resulted in over $1 million in expenses within the first two weeks of operation. To address these concerns, Butterfly Effect plans to open its first international office in Tokyo, expanding into Japan’s tech market while reducing its reliance on U.S.-based infrastructure.

A key advantage for Manus in navigating the current political climate is its decision to focus on application development rather than expensive large language model (LLM) training. This strategic move has helped the company avoid some of the U.S. investment restrictions that are affecting other AI startups. By leveraging domestic AI models in China and partnering with Alibaba Group, Butterfly Effect has positioned Manus to remain insulated from geopolitical tensions while targeting global markets.

Manus has also faced mixed reactions from users. While some have hailed the platform as groundbreaking, others have found it lacking in certain areas, with some users reporting that the product felt unfinished. Despite these varying opinions, the startup’s rapid growth and its ability to secure significant investment demonstrate the growing demand for AI-driven solutions capable of automating a wide range of tasks, signaling Manus’s potential for broader success in the competitive AI landscape.

In addition to securing funding, Manus has launched a subscription service, with pricing starting at $39 per month and a $199 upgraded option, aligning with OpenAI’s ChatGPT Pro. This pricing structure is seen as somewhat aggressive, especially for a service still in its testing phase. The subscription model reflects the company’s strategy to monetize its AI capabilities and expand its user base despite being in the early stages of its product rollout.