Benchmark's recent lead in a $75 million funding round for Chinese AI startup Manus has stirred controversy within Silicon Valley. The investment, valuing Manus at $500 million, highlights the increasing competition and quality of Chinese AI models. Manus, developed by Chinese entrepreneurs, offers an AI agent capable of handling complex tasks, rivalling offerings from OpenAI.
Butterfly Effect, Manus's parent company, intends to use the funding for international expansion into markets including the US, Japan and the Middle East. Manus's AI agent has gained popularity for its ability to perform tasks such as CV screening, stock analysis and travel planning. The US Treasury is reportedly reviewing Benchmark's investment, reflecting growing regulatory scrutiny of cross-border technology investments, particularly between the US and China.
Despite this scrutiny, the investment signals confidence in Manus's potential to compete globally. The situation underscores the complexities and potential pitfalls of investing in Chinese AI amid ongoing US-China tech tensions. Manus has transitioned to public registration after the funding round.
