According to reports from American technology media, due to the increasingly tense relationship between China and the United States, the founder of Manus AI and some investors have discussed the possibility of completely separating their China and international businesses. After recently completing a Series B funding round, the &#34;Butterfly Effect&#34; plans to use the funds to explore new markets, including the United States, Japan, and the Middle East.
The company behind Manus AI, &#34;Butterfly Effect,&#34; has announced that it will set its headquarters in Singapore, possibly downplaying its &#34;Chinese identity&#34; to focus on international markets.
Records obtained by Lianhe Zaobao from the Accounting and Corporate Regulatory Authority (ACRA) show that a company named &#34;Butterfly Effect&#34; was registered in Singapore in August 2023 and is wholly owned by an entity of the same name based in the Cayman Islands.
<h3>Analysis: Chinese Tech Companies Facing Various Troubles, Including Investment Issues</h3>
In recent years, there have been many AI startups founded by teams from China but headquartered in Singapore. For example, Lu Jianfeng, who has deep roots in the Chinese tech industry, founded WIZ.AI in Singapore in 2019, which has now become a leading generative AI company in Southeast Asia.
<h3>Co-founders Deliver Keynote Speech in Singapore</h3>
It is reported that the research and development team that preceded Manus AI was named Monica.im, and the company behind it is the Chinese startup &#34;Butterfly Effect.&#34;
The founding team of Manus includes Xiao Hong, Ji Yichao, and Zhang Tao. The first two are serial entrepreneurs and co-founders of Butterfly Effect, while Zhang Tao previously worked at ByteDance.
In an interview, Oken stated that, given the experiences of companies like ByteDance, some tech companies have realized that being too closely tied to China could lead to various troubles in international markets due to geopolitical tensions.
Shen Meng also believes that having headquarters in Singapore helps establish an international image. Additionally, Singapore is a key computing power hub in Asia, offering advantages in industry communication resources and talent, which may be reasons for the company's choice of Singapore.
He said, &#34;The focus in the U.S. has shifted to who truly owns or controls these Chinese tech companies. This redefinition of trade will have significant impacts on countries and companies.&#34;
Shen Meng, director of the Beijing-based investment bank Xiangsong Capital, stated in an interview that unlike AI large model developers, Manus focuses on applications and services, requiring support from multiple large models, such as OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude. &#34;If a company is established within China, it will be subject to restrictions on certain AI technologies and computing power from the U.S., and can only use large models available domestically in China.&#34;
Even with the emergence of DeepSeek R1, which has impressed the outside world with China's AI technology, this trend has not stopped
The relevant regulations aim to prohibit American individuals and companies from making partial investments in sensitive industries such as semiconductors, quantum computing, and AI, while others must report to the U.S. government. This restriction was finalized by the Biden administration in October last year and officially took effect in January this year.
The artificial intelligence startup that gained attention for claiming to launch the world's first &#34;General AI Agent&#34; Manus AI in March has moved its headquarters from China to Singapore and has recently begun local recruitment, including positions for AI engineers.
Now, this pressure also exists at the investment level. Reports indicate that the American venture capital firm Benchmark is under review by the U.S. Treasury due to its leading role in the Series B financing of Manus AI in April, to check for any violations of the regulations prohibiting American individuals and companies from investing in advanced technology in China.
Steven Okun, CEO of the Singapore public affairs consulting firm APAC Advisors, believes that the path for Chinese tech companies to register elsewhere may be effective for lesser-known companies looking to enter the U.S. market.
Zhang Tao shared how the company was founded during a keynote speech at the &#34;SuperAI&#34; conference held in Singapore on Wednesday (June 18), revealing that the company's headquarters is now in Singapore but did not accept media interviews.
In early June, &#34;Butterfly Effect&#34; confirmed its office location in Singapore, which is consistent with the location currently marked for Manus AI on Google Maps, located on Bridge North Road.
<h4>Further Reading</h4>
Currently, &#34;Butterfly Effect&#34; has at least five job openings on Mycareersfuture, mainly for technical positions, including junior AI engineers, data scientists, and software development managers, with salaries ranging from 8,000 to 17,000 yuan

OpenAI

The artificial intelligence company Manus AI has moved its headquarters from China to Singapore and is hiring AI engineers locally. The company was registered in Singapore in August 2023, backed by the Chinese startup "Butterfly Effect." Due to the tense Sino-U.S. relations, the founder discussed separating Chinese and international operations. After completing its Series B financing, "Butterfly Effect" plans to expand into the U.S., Japan, and Middle Eastern markets, aiming to downplay its "Chinese characteristics" and focus on international markets

Zaobao

Alphabet

CNI Resource

The intelligent agent Manus AI "Butterfly Effect" headquarters relocates to Singapore