US Treasury Scrutinizes Benchmark's Investment in Chinese AI Startup Manus
The US Treasury Department is reviewing Benchmark's $75 million investment in Manus AI, a Chinese AI startup recently valued at $500 million. This review stems from concerns about compliance with 2023 restrictions on US investments in Chinese companies, according to sources familiar with the matter.
Benchmark's legal team reportedly cleared the investment based on two key arguments. First, Manus doesn't develop its own AI models but acts as a "wrapper" around existing ones. Second, Manus is incorporated in the Cayman Islands, not mainland China.
However, incorporating in the Cayman Islands is a common practice for Chinese companies seeking foreign investment, similar to Alibaba's structure. This has raised questions about the true nature of Manus's operations and its ties to China.
Criticism from Founders Fund Partner
The investment has drawn criticism, notably from Delian Asparouhov, a partner at Founders Fund. Asparouhov expressed his concerns on X (formerly Twitter):
wow, actions have consequences?
im hearing about this for the first time https://t.co/lTIcRByz5w
Benchmark, Manus AI, and the US Treasury have not yet responded to requests for comment.
