Core Viewpoint - The ongoing investigation into Manus by U.S. regulatory authorities regarding its recent financing raises significant concerns for Chinese AI companies and investors, particularly in light of the Reverse CFIUS regulations that restrict U.S. capital and high-end technology from flowing into critical sectors in China [1][2][4]. Group 1: Manus Financing and Regulatory Scrutiny - Manus completed a new round of financing led by Benchmark, achieving a valuation of $500 million (approximately 3.6 billion RMB) [4]. - Following this financing, Manus underwent several business registration changes, suggesting the deal was successfully closed [4]. - The company is currently under investigation by U.S. regulators due to its acceptance of investment from a U.S. firm, which may violate Reverse CFIUS regulations [4][5]. Group 2: Reverse CFIUS Regulations - The Reverse CFIUS regulations, effective January 2, 2025, specifically target investments in AI, semiconductors, and quantum information technology from U.S. entities into China [4]. - The regulations set a threshold for what constitutes "restricted activities," focusing on whether a business like Manus engages in "covered activities" that meet these criteria [5][6]. - Two key conditions must be met for a business to fall under the Reverse CFIUS regulations: whether the business has "designed" or "substantially modified" its AI models and whether its training computation exceeds 10^23 [7][11]. Group 3: Implications for Other Companies - The outcome of Manus's case will serve as a critical observation point for other Chinese AI companies and investors, especially as more firms begin to file for Reverse CFIUS exemptions [2][15]. - If Manus is deemed to have merely "called" upon existing AI models without substantial development, it may avoid regulatory penalties; however, if its activities are classified as "development," it could face significant scrutiny [7][8]. - The potential for increased regulatory oversight may compel companies to invest more resources in compliance, leading to strategic adjustments in their operations and corporate structures [14][15]. Group 4: Strategic Adjustments and Market Trends - Companies are beginning to consider separating their U.S. and Chinese operations to navigate the complexities of multiple regulatory frameworks, including Reverse CFIUS and EO 14117 [14][15]. - Manus has reportedly moved its headquarters to Singapore and is optimizing its workforce in China, indicating a shift towards compliance with international regulations [14][15]. - Other companies, such as HeyGen, have also relocated their headquarters to the U.S. in response to similar regulatory pressures, highlighting a trend of "choosing sides" in the current geopolitical landscape [15].