Manus AI, a rising star in the AI startup arena, has recently hit a high note by securing $75 million in funding led by Benchmark, shooting its valuation up to a whopping half a billion dollars.

Nevertheless, the investment deal is currently under intense scrutiny by the U.S. Treasury Department, as reported by unnamed informants to Semafor. The inspection is in line with the U.S.'s 2023 stipulations concerning investments in Chinese firms.

Looking into the details, it seems Benchmark's legal team gave the green light to the investment because Manus AI doesn't directly develop its own AI models. Instead, it serves as a 'wrapper' that consolidates existing models, according to Semafor.

To add to the intrigue, the legal minds also determined that Manus AI doesn't qualify as a China-based company because it's officially incorporated in the Cayman Islands, a popular workaround used by Chinese companies, including internet giant Alibaba, to attract offshore capital.

Benchmark's decision to invest in Manus has drawn attention—and not all of it good. Founders Fund partner Delian Asparouhov shone a critical light on it on X, quipping, "Wow, actions have consequences?”.

As of now, we haven't heard any statements from Benchmark, Manus, or the Treasury in response to these events or the surrounding commentary.