The US is reviewing Benchmark’s investment into Chinese AI startup Manus 

In Brief

Manus AI is 1 of the hottest AI cause startups around, recently raising $75 million astatine a half-billion dollar valuation successful a circular led by Benchmark.

But 2 unnamed sources told Semafor that the concern is present nether reappraisal by the U.S. Treasury Department implicit its compliance with 2023 restrictions connected investing successful Chinese companies.

Benchmark’s lawyers cleared the concern due to the fact that Manus isn’t technically processing its ain AI models, but is alternatively a “wrapper” astir existing ones, Semafor reported. 

Those lawyers besides concluded Manus is not China-based since it’s incorporated successful the Cayman Islands. (That’s a communal operation utilized by Chinese companies, like Alibaba, to entree overseas capital.)

Benchmark has attracted disapproval for its Manus concern from Founders Fund spouse Delian Asparouhov, who posted connected X “wow, actions person consequences”? 

Benchmark, Manus, and Treasury didn’t instantly respond to requests for comment.

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