Unlike anything seen to date, the Manus AI agent doesn’t just chat with users – it is allegedly capable of independently tackling complex multi-step tasks with minimal human guidance.

Developed by Chinese startup Butterfly Effect with financial backing from tech giant Tencent Holdings, Manus AI agent has captured global attention for its ability to bridge the gap between theoretical AI capabilities and practical, real-world applications. It uses an innovative multi-model architecture that combines the strengths of multiple leading language models.

Breakthrough autonomous task execution

In a post on X, Peak Ji Yichao, co-founder and chief scientist at Butterfly Effect, said that the agentic AI was built using existing large language models, including Anthropic’s Claude and fine-tuned versions of Alibaba’s open-source Qwen.

Its multi-model nature allows Manus to use different AI strengths according to what’s demanded of it, resulting in more sophisticated reasoning and execution capabilities.

“The Manus AI agent represents a fundamentally different approach to artificial intelligence,” CNN Business stated. According to coverage, Manus “can carry out complex, multi-step tasks like screening resumés and creating a website,” and “doesn’t only generate ideas but delivers tangible results, like producing a report recommending properties to buy based on specific criteria.”

Real-world performance assessment

In an extensive hands-on evaluation, MIT Technology Review tested the Manus AI agent in three distinct task categories: compiling comprehensive journalist lists, conducting real estate searches with complex parameters, and identifying candidates for its prestigious Innovators Under 35 program.

“Using Manus feels like collaborating with a highly intelligent and efficient intern,” wrote Caiwei Chen in the assessment. “While it occasionally lacks understanding of what it’s being asked to do, makes incorrect assumptions, or cuts corners to expedite tasks, it explains its reasoning clearly, is remarkably adaptable, and can improve substantially when provided with detailed instructions or feedback.”

The evaluation revealed one of the Manus AI agent’s most distinctive features – its “Manus’s Computer” interface, which provides unprecedented transparency into the AI’s decision-making process.

The application window lets users observe the agent’s actions in real time and intervene when necessary, creating a collaborative human-AI workflow that maintains user control while automating complex processes.

Technical implementation challenges

Despite impressive capabilities, the Manus AI agent faces significant technical hurdles in its current implementation.MIT Technology Reviewdocumented frequent system crashes and timeout errors during extended use.

The platform displayed error messages, citing “high service load,” suggesting that computational infrastructure remains a limitation.

The technical constraints have contributed to highly restricted access, with less than 1% of wait-listed users receiving invite codes – the official Manus Discord channel has already accumulated over 186,000 members.

According to reporting from Chinese technology publication36Kr, the Manus AI agent’s operational costs remain relatively competitive at approximately $2 per task.

Strategic partnership with Alibaba Cloud

The creators of the Manus AI agent have announced a partnership with Alibaba’s cloud computing division. According to a South China Morning Post report dated March 11, “Manus will engage in strategic cooperation with Alibaba’s Qwen team to meet the needs of Chinese users.”

The partnership aims to make Manus available on “domestic models and computing platforms,” although implementation timelines remain unspecified.

Parallel advancements in foundation models

The Manus-Alibaba partnership coincides with Alibaba’s advances in AI foundation model technology. On March 6, the company published its QwQ-32B reasoning model, claiming performance characteristics that surpass OpenAI’s o1-mini and rivalling DeepSeek’s R1 model, despite a lower parameter count.

CNN Businessreported, “Alibaba touted its new model, QwQ-32B, in an online statement as delivering exceptional performance, almost entirely surpassing OpenAI-o1-mini and rivalling the strongest open-source reasoning model, DeepSeek-R1.”

The claimed efficiency gains are particularly noteworthy – Alibaba says QwQ-32B achieves competitive performance with just 32 billion parameters, compared to the 671 billion parameters in DeepSeek’s R1 model. The reduced model size suggests substantially lower computational requirements for training and inference with advanced reasoning capabilities.

China’s strategic AI investments

The Manus AI agent and Alibaba’s model advancements reflect China’s broader strategic emphasis on artificial intelligence development. The Chinese government has pledged explicit support for “emerging industries and industries of the future,” with artificial intelligence receiving particular focus alongside quantum computing and robotics.

Alibaba will invest 380 billion yuan (approximately $52.4 billion) in AI and cloud computing infrastructure in the next three years, a figure the company notes exceeds its total investments in these sectors during the previous decade.

As MIT Technology Review’s Caiwei Chen said, “Chinese AI companies are not just following in the footsteps of their Western counterparts. Rather than just innovating on base models, they are actively shaping the adoption of autonomous AI agents in their way.”

The Manus AI agent also exemplifies how China’s artificial intelligence ecosystem has evolved beyond merely replicating Western advances. Government policies promoting technological self-reliance, substantial funding initiatives, and a growing pipeline of specialised AI talent from Chinese universities have created conditions for original innovation.

Rather than a single approach to artificial intelligence, we are witnessing diverse implementation philosophies likely resulting in complementary systems optimised for different uses and cultural contexts.

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According to multiple sources familiar with the matter, Apple is in advanced talks to use Alibaba’s Qwen AI models for its iPhone lineup in mainland China. The move would depart from Apple’s global strategy of using OpenAI’s GPT models for its AI features, highlighting the company’s willingness to adapt to local market conditions.

The technical edge of Qwen AI

Qwen AI is attractive to Apple in China because of the former’s proven capabilities in the open-source AI ecosystem. Recent benchmarks from Hugging Face, a leading collaborative machine-learning platform, position Qwen at the forefront of open-source large language models (LLMs).

The platform’s data shows Qwen-powered models dominating the top 10 positions in performance global rankings, demonstrating the technical maturity that Apple seeks for its AI integration.

“The selection of Qwen AI for iPhone integration would validate Alibaba’s AI capabilities,” explains Morningstar’s senior equity analyst Chelsey Lam. “This could be particularly important for Apple’s strategy to re-invigorate iPhone sales in China, where AI features have become increasingly important for smartphone users.”

Regulatory navigation and market impact

The potential partnership reflects an understanding of China’s AI regulatory landscape. While Apple’s global AI features remain unavailable in China due to regulatory requirements, partnering with Alibaba could provide a compliant pathway to introduce advanced AI capabilities.

Market reaction to the news has been notably positive:

• Alibaba’s stock surged 7.6% on Monday, followed by an additional 1.3% gain on Tuesday
• Apple shares responded with a 2.2% increase
• The tech sector has shown renewed interest in China-focused AI integration strategies

Development timeline and expectations

The timing of the potential collaboration aligns with Apple’s upcoming China developer conference in Shanghai, scheduled for March 25. Industry observers speculate the event could serve as a platform on which to announce the integration of Qwen AI features into the iPhone ecosystem.

“The partnership could change how international tech companies approach AI localisation in China,” noted a senior AI researcher at a leading Chinese university, speaking anonymously. “It’s not just about technology integration; it’s about creating a sustainable model for AI development in China’s regulatory framework.”

Implications for developers and users

For Chinese iOS developers, the potential integration of Qwen AI presents opportunity. The partnership could enable:

• Creation of locally optimised AI applications
• Enhanced natural language processing capabilities specific to Chinese users
• Seamless integration with local services and platforms

Prospects and industry impact

The effects of the partnership extend beyond immediate market concerns. As global tech companies navigate operating in China, the Apple-Alibaba collaboration could serve as a blueprint for future integration.

For Alibaba, securing Apple as a flagship partner could catalyse more partnerships with global technology companies seeking AI solutions for China. The collaboration would demonstrate Qwen AI’s capability to meet the stringent requirements of one of the world’s most demanding tech companies.

Looking ahead

While both companies maintain official silence on the partnership, the tech community awaits announcements at the upcoming Shanghai developer conference. The development is important when AI capabilities increasingly influence smartphone purchasing decisions. For Apple, success in China will impact its global growth trajectory, and integrating Qwen AI could provide the competitive edge it needs to maintain its premium market position against local manufacturers offering advanced AI features.

It underscores a broader trend in the tech industry: the growing importance of localised AI solutions in major markets.

See also: Has Huawei outsmarted Apple in the AI race?

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Faced with a saturated domestic market, more Chinese app developers are now setting their sights on Western markets, including the US.

The South China Morning Post reported that Chinese AI apps have swiftly gained traction in the US, particularly in the education sector. Applications like Question.AI, owned by Beijing-based educational technology startup Zuoyebang and ByteDance’s Gauth, are revolutionising how American students tackle their homework by providing instant solutions and explanations through advanced AI algorithms. 

For context, Question.AI and Gauth are popular educational apps that use generative AI to help US students in various subjects. Users can photograph homework problems to receive solutions with step-by-step explanations. Question.AI launched in mid-2023, while Gauth (originally Gauthmath) started in 2020 as a math solver before expanding. Both offer free essential use with paid additional features. As of recent rankings, Gauth is the second most popular educational app globally, with Question.AI at seventh.

This convenience has resonated with students and parents, offering a seamless blend of technology and education that complements the increasingly digital learning environment. Initially designed for China’s vast and competitive market, these apps began bringing cutting-edge AI capabilities to American classrooms. After all, with its high digital adoption rates and openness to educational innovation, the US market presents a lucrative opportunity for Chinese developers looking to expand their user base beyond domestic borders.

According to mobile app intelligence service AppMagic, Question.AI and Gauth, generative AI-driven homework helpers, were ranked among the top three free educational apps in the US on Apple’s iOS store and Google Play from February to May.

AI in education: Domestic pressure driving global expansion 

In China, the development of large language models has been prolific. With over 200 such models created, the competition among AI developers is intense. This high-stakes environment has driven many companies to seek growth opportunities abroad. The approval of these models for public release by Chinese authorities signifies the maturity and readiness of these technologies for broader application, encouraging developers to explore international markets.

This push for global expansion is not just about finding new revenue streams but also about gaining a competitive edge and establishing a global presence. For Chinese AI companies, breaking into Western markets, particularly the US, symbolises commercial success and technological leadership on a global scale.

The adoption of Chinese AI apps in the US education sector also illustrates some strategic advantages these tools possess. The sophisticated AI technology in Question.AI and Gauth delivers individual-learnt experiences. In the US, educators appreciate such granularity as they are committed to personalised instruction for students with various learning styles.

Moreover, the flexibility and accessibility of these AI tools align well with the digital transformation sweeping through American education. Given that the pandemic has expedited online learning, AI-powered educational apps stand to bridge this gap in traditional teaching methodologies by providing timely help and improving their delivery methods.

Navigating challenges: Data privacy and cultural integration

Even with their technological prowess, Chinese AI apps will be met by data privacy and security concerns when entering US markets. There will be increased oversight on how these apps manage user data, especially in light of the geopolitical tensions between the US and China. Ensuring compliance with stringent US data privacy regulations is crucial for gaining user trust and widespread acceptance.

Additionally, cultural integration poses another hurdle. Chinese educational philosophies often emphasise rote learning and discipline, which may contrast with American education’s focus on creativity and critical thinking. Successfully blending these approaches to create a holistic learning experience will be essential to the sustained success of these apps in the US.

Ultimately, the success of Chinese AI apps like Question.AI and Gauth in the US clearly demonstrates the advanced technological capabilities that have been developed through intense domestic competition. As these companies continue to navigate the complexities of entering the Western market, their impact on the future of education is expected to expand.

See also: Tech war escalates: OpenAI shuts door on China

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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OpenAI’s move is not surprising given the increasing geopolitical tensions and technology rivalry; however, it represents an inflection point in AI that will further turn up the heat on rather icy tech cold war. The result is massive repercussions on the future AI landscape in China and worldwide and will lay much groundwork for fierce competition among AI superpowers in the future.

In the face of increased governmental demands and rivalry for AI dominance, OpenAI’s choice protects the company’s intellectual property while navigating geopolitical difficulties. The move underscores the deepening digital divide between China and Western countries, which remains one of the defining elements in this tech war era. However, as OpenAI cuts ties with China, it also marks a bigger tech decoupling trend in which the US and Chinese tech ecosystems are pulling apart further, according to some experts.

Implications for Chinese AI players

OpenAI’s blockade presents both challenges and opportunities for Chinese AI companies. On one hand, the absence of OpenAI’s advanced models, such as GPT-4, from the Chinese market could slow the adoption and integration of cutting-edge AI technologies. This is particularly relevant for startups and smaller companies that lack the resources to develop similar models independently.

“OpenAI’s move, which is set to go into effect on July 9, could affect Chinese companies developing their services based on OpenAI’s large language models (LLMs),” a South China Morning Post report stated, citing experts. However, it can also act as a spark that propels innovation in China, driving Chinese companies even further towards producing their technologies. It could create a new AI research boom and make the Chinese landscape more energetic and self-sufficient.

On the other hand, the blockade creates a vacuum that domestic giants like Alibaba, Baidu, and Tencent are well-positioned to fill. Those companies have the financial muscle, talent, and infrastructure to accelerate their AI research and development, leading to even more active efforts by these players in AI innovation and building homegrown alternatives for OpenAI. 

Besides, the Chinese government has aggressively funded its tech industry with large investments and favorable regulations. In turn, we may see a new rush of AI research that would increase competition between domestic Chinese players and bring China in line with its overseas counterparts.

Global AI dynamics

The move by OpenAI has ramifications beyond China. The potential of this move to shift global AI dynamics is very real, and it looks increasingly likely that we could see an even more fragmented AI landscape. While the US and China are busy defining their dominance, other countries and regions may align with one side based on access to AI technologies.

This is particularly the case for Southeast Asia and African countries where China has strong economic ties – they would likely favour more Chinese AI solutions. However, European and North American states could increase their dependence on American-based AI solutions. This split could have profound implications for international consortia, data exchanges and the evolution of worldwide AI norms.

The blockade also raises crucial questions of ethics and security. In this context, OpenAI is exercising digital sovereignty—it controls who can and cannot reap the fruits of its technology. The moves are part of a broader clampdown now taking place at all levels of the AI stack to ensure such technologies are built and deployed in ways that meet decent standards and ethics, including security aspects.

This challenges China in strategically positioning its burgeoning AI sector so that other nations do not see it as threatening. Yet, as the AI race heats up, we need to put ethics inevitably and international collaboration as top priorities and for some that see China as an essential market, those companies will have to find a way to work around the complicated geopolitical hurdles.  

Apple, for instance, is reportedly seeking local partners to provide services that comply with Beijing’s stringent AI regulations, including the standards set by the China Electronic Standardisation Institute last year. After all, the future of AI hinges not only on technological advancements but also on the geopolitical strategies and policies that govern its development and deployment. 

(Photo: Jonathan Kemper)

See also: Apple is reportedly getting free ChatGPT access

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Goldman Sachs, a leading global investment firm, highlights China’s resources and ambitious plans for an intelligent economy based on AI.

The report is titled “China’s Rise in Artificial Intelligence” and says both companies and the Chinese government are putting their weight behind AI. In fact, back in July, the Chinese government announced it will increase government spending on core AI programs to $22 billion in the next few years, with plans to spend nearly $60 billion per year by 2025.

“We believe AI technology will become a priority on the government’s agenda, and we expect further national/regional policy and funding support on AI to follow,” the bank said.

Chinese giant Baidu has made a name for itself as one of the leaders in AI development. The company is often seen as the Chinese equivalent to Google, a company which is seen to be leading AI development in the West.

Guidelines on developing AI

China’s State Council has issued guidelines on developing AI in China and set the goal to become a global innovation center by 2030. The output value of AI is expected to surpass 1 trillion yuan ($147.80 billion)

AI requires vast amounts of data, and this is an area where China thrives due to its large population. The country is also known for its ‘Great Firewall’ and control over what content is able to be accessed, and from what providers.

“China understandably generates (about) 13 percent of the digital information globally. By 2020, we expect this to grow to around 20 percent to 25 percent as China’s economy emerges as the world’s largest,” Goldman Sachs predicts.

The firm also predicts China will generate around 9 to 10 zetabytes (about 1 trillion gigabytes) of data.

In order to gain the full value of AI, Goldman Sachs has identified four areas needed: talent, data, infrastructure, and computing power. Goldman believes China meets these criteria and has a ripe opportunity to take a lead in AI.

(Photo by Glen Rushton)

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