In a significant move to bolster its artificial intelligence capabilities, Meta Platforms Inc. has announced its agreement to purchase Manus, a popular AI agent startup based in Singapore with roots in China. The deal, valued at more than US$2 billion, represents a rare acquisition of an Asian tech firm by a U.S. giant and underscores CEO Mark Zuckerberg's multibillion-dollar commitment to making AI the company's top priority.
A Swift and Strategic Acquisition
The agreement was finalized in a remarkably short timeframe of approximately 10 days, according to sources familiar with the matter who requested anonymity due to the private nature of the details. Meta's Chief AI Officer, Alexandr Wang, welcomed the roughly 100-person Manus team in a post on the social media platform X.
Meta stated it intends to continue operating and selling the Manus service while integrating its technology into Meta's own product ecosystem. This acquisition provides Meta with a more immediate revenue stream from its massive AI investments, as Manus had achieved an annual revenue run rate of US$125 million earlier this year by selling its AI agent to businesses via subscription.
Cutting Ties with Chinese Investors
A critical aspect of the deal involves severing Manus's connections to Chinese capital. The startup was previously backed by prominent Chinese investors, including Tencent Holdings Ltd., ZhenFund, and HSG. A Meta spokesperson confirmed that all existing Chinese ownership interests in Manus AI will be eliminated following the transaction, and the company will discontinue its services and operations in China.
This move is seen as a strategic step to potentially ease regulatory concerns in the United States, where the government is increasingly cautious about technology transfers and the ongoing rivalry with China for dominance in the critical field of artificial intelligence. Manus's parent company, Butterfly Effect Pte, was originally founded in China before relocating its headquarters to Singapore.
Manus's Technology and Meta's AI Ambitions
The Manus AI agent is designed to perform a range of general digital tasks autonomously, without requiring constant human supervision. Its capabilities include screening resumes, creating travel itineraries, and analyzing stocks based on simple user instructions. This aligns with the growing enterprise trend towards AI agents, which companies like Salesforce and ServiceNow are also promoting as more efficient than interactive, prompt-based chatbots.
For Meta, this acquisition adds specialized agent technology to its portfolio. The company already offers its Meta AI chatbot across its family of apps—Facebook, Instagram, and WhatsApp—as well as through its AI glasses. According to reports from The Wall Street Journal, Manus co-founder and CEO Xiao Hong will report to Meta's Chief Operating Officer, Javier Olivan, following the acquisition.
This deal is the latest in a series of aggressive investments by Zuckerberg, who is spending billions to hire top AI researchers, construct new data centres, and develop advanced AI models. The purchase of Manus, which was valued at close to US$500 million in a funding round led by U.S. venture firm Benchmark earlier this year, accelerates Meta's push to build a substantial business around its foundational AI investments.
