Manus AI Faces Scrutiny Over Chinese Investment
Manus AI, a prominent AI agent startup, recently made headlines after securing a substantial $75 million in funding, valuing the company at half a billion dollars. The investment round was spearheaded by Benchmark, a well-known venture capital firm.
However, the investment has come under intense scrutiny from the U.S. Treasury Department, according to sources who spoke to Semafor. The department is investigating whether the investment complies with restrictions imposed in 2023 regarding investments in Chinese companies.
Benchmark’s legal team defended the investment by arguing that Manus AI does not develop its own AI models but instead acts as a “wrapper” around existing ones. This distinction, they claim, exempts the company from being classified as a Chinese entity.
Furthermore, Manus AI is registered in the Cayman Islands, a common practice among Chinese companies like Alibaba to gain access to foreign investments. Despite these arguments, the Treasury Department is still investigating the matter.
The investment has sparked controversy, with Delian Asparouhov, a partner at Founders Fund, criticizing Benchmark for its decision. Asparouhov took to social media to express his disapproval, highlighting the potential consequences of such investments.
At the time of writing, Benchmark, Manus AI, and the U.S. Treasury Department have not provided any comments on the ongoing investigation.
