Summary:
Manus AI raised $75M at a $500M valuation, led by Benchmark
Investment under U.S. Treasury review for compliance with 2023 restrictions on Chinese investments
Benchmark claims Manus is a "wrapper" around existing AI models, not developing its own
Manus incorporated in Cayman Islands, a common move for Chinese companies accessing foreign capital
Criticism from Delian Asparouhov of Founders Fund highlights potential regulatory consequences
Manus AI, a leading AI agent startup, recently secured a $75 million investment at a $500 million valuation, with Benchmark leading the round. However, this significant financial move is now under the microscope of the U.S. Treasury Department. The review focuses on compliance with 2023 restrictions on investments in Chinese companies.
Image Credits: Chip Somodevilla / Getty Images
According to sources, Benchmark's legal team justified the investment by stating that Manus does not develop its own AI models but acts as a "wrapper" around existing ones. Additionally, they argued that Manus is not China-based, as it's incorporated in the Cayman Islands—a common strategy for Chinese companies seeking foreign capital.
The investment has sparked criticism, notably from Delian Asparouhov of Founders Fund, who questioned the decision on social media. As the situation unfolds, responses from Benchmark, Manus, and the Treasury are awaited.
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