Chinese AI Startups Look Overseas to Cash In on More Mature Markets
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The Chinese developer behind much-hyped artificial intelligence (AI) agent Manus has relocated its headquarters to Singapore, joining a growing group of local AI startups prioritizing overseas markets to tap foreign demand and navigate the U.S.-China tech war.
Beijing Butterfly Effect Technology Co. Ltd. launched its general-purpose AI agent Manus in March, after promotional videos showing its ability to perform complex tasks autonomously — such as filtering resumes and analyzing stocks — went viral on Chinese social media. However, so far, Manus is only available overseas. Days after the launch, Butterfly Effect announced it would roll out a Chinese version in partnership with Alibaba Group Holding Ltd., using the tech giant’s open-source model. But there has been no further news about this cooperation.
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- Chinese AI startups like Butterfly Effect and AIsphere are relocating or expanding overseas, notably to Singapore, to navigate U.S.-China tech tensions and reach global markets.
- Butterfly Effect, valued at $500 million after a $75 million funding round, faces U.S. investment restrictions, while AIsphere’s PixVerse achieved 60 million downloads and 16 million monthly active users overseas.
- Chinese-developed AI tools are gaining wider international acceptance, especially among users of Chinese descent and via popular social media platforms.
- Beijing Butterfly Effect Technology Co. Ltd.
- Beijing Butterfly Effect Technology Co. Ltd. (known as Butterfly Effect) developed the AI agent Manus. They've moved their headquarters to Singapore due to U.S. investment restrictions and to improve access to international markets. Their $75 million funding round is under U.S. Treasury investigation. While a Chinese version of Manus was announced, it hasn't materialized.
- Alibaba Group Holding Ltd.
- Alibaba Group Holding Ltd. collaborated with Beijing Butterfly Effect Technology Co. Ltd. to release a Chinese rendition of the AI agent Manus. This version would utilize Alibaba's open-source model, though further updates on this partnership have not been released.
- ByteDance Co. Ltd.
- ByteDance Co. Ltd. is a Chinese technology company. A former executive, Wang Changhu, founded AIsphere, an AI video model and application developer, in April 2023. AIsphere's flagship product, PixVerse, was launched overseas in January 2024.
- Zilliz
- Zilliz is a vector database company with its headquarters in the US and offices in China, the UK, Germany, and Singapore. The company offers an open-source database of vectors, which are mathematical points that allow AI algorithms to understand data.
- April 2023：
- AIsphere was founded in Beijing by Wang Changhu.
- January 2024：
- AIsphere launched its flagship product PixVerse overseas.
- 2025：
- Butterfly Effect relocated its headquarters to Singapore.
- March 2025：
- Beijing Butterfly Effect Technology Co. Ltd. launched its general-purpose AI agent Manus.
- Days after March 2025：
- Butterfly Effect announced it would roll out a Chinese version of Manus in partnership with Alibaba Group Holding Ltd.
- April 2025：
- Butterfly Effect completed a $75 million funding round led by Benchmark, bringing its valuation to $500 million.
- April 2025：
- PixVerse amassed over 60 million downloads overseas, with 16 million monthly active users by this time.
- June 2025：
- A Chinese version of PixVerse hit the market.
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