The US is Assessing Benchmark’s Investment in Chinese AI Startup Manus

Manus AI has quickly risen as a key player in the AI agent space, recently attracting $75 million in funding at a valuation of $500 million, led by Benchmark.

However, two unnamed sources have told Semafor that the U.S. Treasury Department is currently reviewing this investment to ensure compliance with the 2023 restrictions on investments in Chinese companies.

As reported by Semafor, Benchmark’s legal advisors endorsed the investment, noting that Manus does not create its own AI models but serves as a “wrapper” for existing technologies.

The legal team also found that Manus is not based in China, as it is registered in the Cayman Islands— a structure often leveraged by Chinese firms such as Alibaba to access international investment.

Benchmark has encountered criticism over its investment in Manus, particularly from Founders Fund partner Delian Asparouhov, who commented on X, “wow, actions have consequences?”