Manus AI, a prominent AI agent startup, recently secured $75 million in funding, reaching a valuation of $500 million in a round led by Benchmark.
However, two unnamed sources informed Semafor that the U.S. Treasury Department is reviewing the investment to ensure compliance with the 2023 restrictions on investments in Chinese companies.
According to Semafor, Benchmark’s legal team approved the investment, asserting that Manus does not develop its own AI models but instead functions as a “wrapper” around existing ones.
The legal team also determined that Manus is not China-based, as it is incorporated in the Cayman Islands. This is a common strategy employed by Chinese companies, such as Alibaba, to access foreign capital.
Benchmark’s investment in Manus faced criticism from Delian Asparouhov, a partner at Founders Fund, who commented on X, questioning the implications of such actions.
Representatives from Benchmark, Manus, and the Treasury Department have not yet provided comments.
