Manus AI is making waves in the world of AI startups, having recently secured $75 million in funding with a valuation of half a billion dollars in a round led by Benchmark. However, according to two undisclosed sources, the U.S. Treasury Department is now taking a closer look at the investment to ensure compliance with 2023 restrictions on investing in Chinese companies.

Despite concerns, Benchmark’s legal team has given the green light to the investment in Manus AI. This decision was made based on the fact that Manus is not directly developing its own AI models, but rather acting as a “wrapper” around existing ones. Additionally, Manus is not based in China, as it is incorporated in the Cayman Islands, a common structure used by Chinese companies to access foreign capital.

Criticism of Benchmark’s investment in Manus AI has emerged from Delian Asparouhov, a partner at Founders Fund, who took to X social media platform to express his views on the matter. However, neither Benchmark, Manus, nor the Treasury Department have issued any official comments in response to inquiries.