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Tencent to Become Top Shareholder in AI Startup Manus at $2 Billion Valuation

Tencent Holdings is negotiating to become the largest shareholder of Manus, a Singapore-based AI startup, according to foreign media reports on July 10. The deal values Manus at $2 billion (approximately RMB 13.6 billion) and would replace a previously planned acquisition by US tech giant Meta Platforms, which was set to be finalized by the end of 2025 but has now been required to be revoked.

Sources say existing investors including Tencent, Zhen Capital, Sequoia China, and the company's management are planning to support the transaction to revoke the Meta acquisition. Tencent is expected to subscribe to the largest share while retaining a minority shareholder status, while US venture capital firms such as Benchmark are likely to exit. After the transaction, Manus will continue to operate independently and bet on its eventual listing in Hong Kong, which may require restructuring to meet Chinese regulatory requirements.

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Manus was founded in 2022 in Wuhan Optics Valley by Xiao Hong, Ji Yichao, and Zhang Tao. Founder Xiao Hong has deep ties with Tencent, as his previous company, Nightingale Technology, received strategic investment of hundreds of millions of yuan from Tencent and was later acquired by Minglue Technology.

As a star project in the AI Agent field, Manus has shown strong financial performance. Its annual recurring revenue (ARR) reached nearly $500 million earlier this year, a significant increase compared to when it was acquired by Meta. In terms of technology and business, it was recently reported that Tencent is testing an embedded AI agent within WeChat, and Xiao Hong was among the first external experts invited to test it.

Although maintaining growth momentum outside the Meta ecosystem still faces uncertainties, if Tencent successfully increases its stake in Manus, it will not only accelerate the practical application of its WeChat AI agent and other cutting-edge products but also deepen its underlying ecosystem layout in the AGI era.

Key Points

  • Tencent is in talks to become the largest shareholder of Manus at a $2 billion valuation.
  • The deal would replace a previously planned acquisition by Meta.
  • Existing investors including Tencent, Zhen Capital, and Sequoia China are backing the transaction.
  • Manus will continue to operate independently and may pursue a Hong Kong listing.
  • The move could accelerate Tencent's AI agent integration in WeChat.