Tencent plans to buy AI startup Manus for $2 billion, aims to become top shareholder

According to sources, Chinese internet giant Tencent is considering investing in AI startup Manus, planning to buy it for about $2 billion to become its biggest shareholder. Tencent is in talks with ZhenFund, Sequoia Capital, and Manus management. The deal may bring in new investors, but early US backers like Benchmark are not expected to join.

Manus was launched by Butterfly Effect in March 2025 and became an overnight sensation. But in June, it moved its headquarters to Singapore, cut most of its China team, and stopped services in China. This move was criticized as a "washing-style" exit, sparking controversy. Earlier, China's foreign investment security review agency banned foreign acquisition of Manus and ordered the deal to be canceled.

Bloomberg reported in May that Manus founders are considering raising about $1 billion to buy back the company. Tencent, Manus, and Meta have not commented.