According to reports, Tencent is contemplating an investment of $2 billion to acquire AI startup Manus, with the ambition of emerging as its largest shareholder. Presently, Tencent is engaged in negotiations with ZhenFund, Sequoia Capital, and the management team of Manus. These talks are still in progress, and there's a possibility of bringing in new investors. However, it is not anticipated that early U.S. investors like Benchmark Capital will be part of this round. Following its launch by Butterfly Effect in March 2025, Manus swiftly rose to prominence. Yet, in June of the same year, the company made a strategic shift by relocating to Singapore, disbanding its domestic team in China, and halting its operations there. This decision stirred up controversy, as it was seen as a move to shed Chinese characteristics after securing U.S. investment. Notably, Chinese authorities had previously prohibited foreign acquisitions of the project. At present, the three founders of Manus are considering raising around $1 billion to facilitate a buyback of the company. When approached for comments, Tencent, Manus, and Meta have all remained tight-lipped, offering no response.
