Meta Acquires AI Startup Manus in $2 Billion Deal
Meta Platforms has agreed to acquire Manus, a Singapore-based artificial intelligence startup, in a deal valued at $2 billion, according to a report by The Wall Street Journal. The acquisition marks one of Meta’s largest AI-focused purchases to date and underscores CEO Mark Zuckerberg’s aggressive push to strengthen the company’s position in generative AI.
Manus rose to prominence in Silicon Valley after releasing a demo earlier this year showcasing AI agents capable of screening job applicants, planning travel itineraries, and analyzing stock portfolios. At the time of its debut, the company claimed its system outperformed OpenAI’s Deep Research, drawing immediate attention from investors and tech executives.
Manus Meta AI Gained Rapid Attention After Public Debut
The startup made waves in April 2025 when it launched publicly, quickly attracting millions of users within weeks. Its AI agents demonstrated autonomous task execution, a capability increasingly viewed as the next frontier in artificial intelligence development.
Industry observers noted that Manus differentiated itself by focusing on real-world productivity use cases, rather than conversational AI alone. This positioning helped fuel rapid adoption and strong commercial traction.
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Strong Revenue Growth Attracted Meta
Manus recently disclosed that it has surpassed $100 million in annual recurring revenue, a rare milestone for an AI startup at such an early stage. The company also confirmed that it has signed up millions of users globally, making it one of the fastest-growing AI platforms of 2025.
For Meta, the acquisition delivers an AI product that is already generating revenue, addressing investor concerns that many large AI investments across the industry have yet to show clear financial returns.
Meta AI : Venture Funding and Valuation Surge
Shortly after launch, Manus secured major venture capital backing. In April 2025, Benchmark led a $75 million funding round, valuing the company at $500 million post-money. As part of the investment, Benchmark general partner Chetan Puttagunta joined Manus’ board.
Chinese media later reported that Manus had previously raised $10 million from investors including Tencent, ZhenFund, and HSG, formerly known as Sequoia China. These early investments helped accelerate product development before the company relocated operations.
Meta AI : Pays Premium to Secure Strategic Asset
According to the Wall Street Journal, Meta’s $2 billion acquisition price matches the valuation Manus was reportedly seeking for its next funding round. The move highlights Meta’s willingness to pay a premium for advanced AI capabilities as competition intensifies with rivals such as OpenAI, Google, and Microsoft.
The acquisition comes as Meta continues heavy investment in AI infrastructure, including an estimated $60 billion commitment toward data centers, chips, and computing capacity across the industry.
Meta AI
Manus to Operate Independently Under Meta
Meta confirmed that Manus will continue to operate independently, at least initially, while its AI agents are gradually integrated into Meta’s ecosystem. The company plans to deploy Manus technology across Facebook, Instagram, and WhatsApp, where Meta AI is already available to users.
Executives believe that incorporating advanced autonomous agents could significantly enhance productivity tools, business services, and consumer applications across Meta’s platforms.
Political Scrutiny Over Chinese Connections
One of the key complications surrounding the deal involves Manus’ origins. The startup’s Chinese founders established its parent company, Butterfly Effect, in Beijing in 2022 before relocating core operations to Singapore in mid-2025.
This background has attracted scrutiny in Washington. US Senator John Cornyn, a senior member of the Senate Intelligence Committee, previously criticized Benchmark’s investment in Manus, citing concerns over US capital supporting Chinese-linked technology firms.
Cornyn has been vocal about limiting US exposure to Chinese technology, a position that has gained growing bipartisan support in Congress.
Meta Cuts All China Ties After Acquisition
In response to political concerns, Meta told Nikkei Asia that Manus will sever all ties with Chinese investors following the acquisition. The company also confirmed that Manus will halt all operations in China.
A Meta spokesperson stated that there will be no continuing Chinese ownership, and the startup will fully align with Meta’s compliance and security requirements.
Historical Context: Meta’s AI Expansion Strategy
Meta has steadily increased its investment in artificial intelligence over the past decade. From early machine-learning systems used in content ranking to the launch of Meta AI, the company has positioned AI as a central pillar of its future growth strategy.
Following the rise of generative AI in 2023, Meta accelerated development of large language models and open-source AI frameworks. Unlike some competitors, Meta has emphasized scalable consumer integration, embedding AI across its social platforms rather than limiting it to standalone products.
The acquisition of Manus represents a strategic shift toward agent-based AI, reflecting the industry’s broader move beyond chatbots toward autonomous digital assistants capable of executing complex tasks.
Market Impact and Industry Outlook
Analysts believe the deal strengthens Meta’s competitive position as AI adoption expands across consumer and enterprise markets. By acquiring a revenue-generating startup with proven technology, Meta reduces execution risk while accelerating innovation.
While regulatory scrutiny remains a potential challenge, especially regarding national security concerns, the acquisition signals Meta’s intent to remain at the forefront of AI development amid intensifying global competition.
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Frequently Asked Questions (FAQs)
Which AI startup is Meta acquiring?
Meta is acquiring Singapore-based AI startup Manus.
How much is Meta paying for Manus?
The reported acquisition price is $2 billion.
What does Manus AI do?
Manus develops autonomous AI agents that perform tasks like recruitment screening, travel planning, and financial analysis.
Will Manus continue operating independently?
Yes, Meta plans to keep Manus operating independently while integrating its technology.
Why are there concerns about Chinese ties?
Manus was originally founded in Beijing, prompting US political scrutiny over Chinese-linked technology.
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