Manus AI relocates to Singapore and trims China workforce amid US chip export scrutiny

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Chinese artificial intelligence (AI) start-up Manus AI has relocated its global headquarters from China to Singapore as the firm looks to mitigate challenges in securing advanced chips vital for training its algorithms.

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The decision coincides with workforce reductions in China and reflects a broader trend of Chinese tech companies adjusting operations in response to mounting US scrutiny.

During a keynote session at the SuperAI conference in Singapore on 18 June 2025, Manus AI co-founder and chief product officer Zhang Tao confirmed that the company’s main base is now in Singapore.

Zhang also noted that Manus maintains offices in Tokyo and California.

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The “About Us” section of Manus AI’s official website has been updated to reflect Singapore as the company’s global headquarters.

Access to Nvidia chips under US export controls

Manus AI’s decision to relocate has fuelled speculation that the move was designed to facilitate more reliable access to Nvidia’s high-end chips, which are essential for training general-purpose AI agents.

Many Chinese firms face significant obstacles in acquiring these chips due to export controls imposed by the United States.

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Like other Chinese tech firms developing cutting-edge AI, Manus AI’s ties to China have come under increased scrutiny in Washington.

A report by Semafor in May 2025 revealed that the US Treasury Department was reviewing a US$75 million financing round for Manus AI led by California-based venture capital firm Benchmark.

The probe aimed to determine if the funding fell within new restrictions requiring American entities to disclose investments that could pose a risk to national security.

Layoffs and transfer of key staff

According to Chinese media outlet Sina Finance, Manus has laid off parts of its domestic workforce and relocated core technical staff to its Singapore base.

The company’s statement to Sina Finance confirmed that the decision was made to enhance operational efficiency, stating: “Based on the company’s own operating efficiency considerations, we have decided to adjust some business teams. The company will continue to focus on core business development and improve overall operational efficiency.”

Currently, Manus AI has around 120 employees in China. While the firm streamlines its domestic operations, it has begun recruiting new talent in Singapore.

Hiring surge in Singapore

Job listings on Manus AI’s website show openings for positions such as data analyst and AI agent engineer.

The recruitment drive suggests that Manus AI is seeking to build a strong base in Singapore to support its ambitions in the global AI market.

The relocation and restructuring come at a time when Manus AI has faced declining user numbers.

According to Chinese media reports, the AI agent’s monthly active users fell from about 20 million in March to around 10 million in May 2025.

This decline has been attributed partly to increasing competition from China’s tech giants. Companies such as ByteDance and Baidu have introduced rival AI products, Coze Space and AgentBuilder respectively, further intensifying the battle for market share within China’s AI sector.

Manus AI’s development and valuation

Manus, developed by the China-based start-up Butterfly Effect, made headlines within the AI community after its invite-only launch in March 2025.

Its advanced capabilities in managing complex tasks have positioned it as a significant symbol of AI innovation in China, following the earlier success of DeepSeek.

In April 2025, Benchmark’s investment reportedly boosted Manus AI’s valuation five-fold to nearly US$500 million, according to Bloomberg.

However, the ongoing US Treasury investigation could pose fresh challenges for the start-up’s efforts to secure American funding while maintaining ties to China.

Singapore as a strategic base

Singapore has increasingly become a strategic hub for Chinese-origin technology companies seeking to navigate tensions between Washington and Beijing.

Fast-fashion giant Shein, for instance, has highlighted its Singapore headquarters while continuing to run a vast supplier network in China.

Similarly, TikTok operates its regional headquarters in Singapore, even as it remains linked to Beijing-based parent company ByteDance.

Other AI firms are adopting similar strategies. HeyGen, another AI start-up with roots in China, relocated its base to the United States last year.

Genspark.AI, founded by former Baidu employees, has also established operations in the US market to diversify its reach.

Industry analysts suggest that Manus AI’s presence in Singapore could help the company attract Western clients and investors while sidestepping potential restrictions that might be imposed on China-based entities.

While Manus AI consolidates its core teams in Singapore, Butterfly Effect remains headquartered in China.

The post Manus AI relocates to Singapore and trims China workforce amid US chip export scrutiny appeared first on The Online Citizen.



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