A Chinese artificial intelligence startup that made waves earlier this year with its AI agent demo is now working to raise substantial new funding as an independent entity.

The company, Manus, is reportedly in talks to secure $500 million at a $4 billion valuation following its return to standalone operations, according to anonymous sources cited by The Wall Street Journal.

Several prominent investors are said to be considering participation in the round, including IDG Capital, Boyu Capital, and battery manufacturer Contemporary Amperex Technology. Existing backers Tencent, HSG, and Zhenfund are also reportedly involved.

Beyond the fundraising efforts, Manus is apparently exploring a corporate restructuring as it lays groundwork for a potential initial public offering in Hong Kong.

The startup's journey has been eventful. After gaining viral attention last year with a demonstration of its AI agent technology, Manus moved its workforce to Singapore in mid-2025. That December, it announced a $2 billion acquisition agreement with Meta. At that point, the company was reportedly generating annual recurring revenue exceeding $100 million.

However, the deal ultimately fell apart. Growing concerns in China about the departure of AI talent and researchers to Western companies led Beijing to block the transaction, pointing to possible violations of export control and foreign investment regulations.

Since then, Manus has been extricating itself from the American social media conglomerate. Its early investors and supporters reportedly assisted the company in repurchasing its shares at a valuation of approximately $2 billion.

As part of the separation process, Manus informed users this August that they would need to export and back up their own data. The company explained it had to delete data generated after Meta's acquisition to "comply with regulatory requirements in specific jurisdictions."

This month, Manus announced it has resumed independent operations, with its founding team continuing to lead the company.

Manus develops AI products and agents that closely resemble offerings from companies like OpenAI, Lovable, and Replit. Its suite includes a chatbot and vibe-coding tools that enable users to build apps and websites, create designs and presentations, generate video, and access a browser assistant, among other features.

Manus did not immediately respond to a request for comment.