Singapore has emerged as a strategic location for Chinese-linked tech firms seeking to navigate Sino-US tensions.

Fast-fashion giant Shein, for example, has highlighted its Singapore location even as it continues to run a vast supplier network in China. Similarly, TikTok has based its operations in Singapore to maintain a distance from Beijing-based parent ByteDance.

While Manus AI has found a new home in Singapore, Butterfly Effect is still based in China, according to a report last month by Singaporean newspaper Lianhe Zaobao.

Manus AI did not immediately respond to a request for comment on Wednesday.

The company is not alone in its shift towards overseas markets. Other AI firms, such as HeyGen – which originated from China and relocated to the US last year – and Genspark.AI – founded by former Baidu employees in the US – are pursuing similar strategies.

Manus AI has begun recruiting in Singapore, offering openings such as data analyst and AI agent engineer, according to its website. Monthly salaries range from US$8,000 to US$16,000, with some positions reaching up to US$18,000, according to local recruitment platform MyCareersFuture.

The expansion efforts came as AI agent Manus experienced a significant drop in monthly active users, from about 20 million in March to around 10 million in May, according to Chinese media reports.

That decline coincided with growing competition from major Chinese tech companies, including ByteDance and Baidu, which have launched rival products, Coze Space and AgentBuilder, respectively.

This article was first published on SCMP.

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