In a major move to strengthen its artificial intelligence capabilities, technology giant Meta announced on Monday its decision to acquire the Chinese-founded AI startup, Manus. The acquisition is part of Meta's accelerated push to integrate sophisticated AI across its vast array of platforms and services.
The Multi-Billion Dollar Deal and Manus's Profile
While Meta did not publicly disclose the financial details of the transaction, a source with direct knowledge revealed that the deal values the Singapore-based firm at between $2 billion and $3 billion. Manus, which did not immediately respond to requests for comment, has been a notable player in the AI space.
Earlier this year, the startup gained viral attention on social media platform X by launching what it claimed to be the world's first general AI agent. This technology is designed to make decisions and execute tasks autonomously, requiring significantly less user prompting than conventional AI chatbots. Once celebrated as China's potential answer to DeepSeek, Manus has asserted that its AI agent's performance surpasses that of OpenAI's DeepResearch.
The company, backed by its parent firm Beijing Butterfly Effect Technology, had raised $75 million this year at a valuation of approximately $500 million, according to media reports. The funding round was led by the U.S. venture capital firm Benchmark. Manus also maintains a strategic partnership with Alibaba for collaboration on AI models.
Strategic Integration and the Broader AI Race
Meta stated that it will operate and sell the Manus service, integrating its technology into both consumer and business products. A key area for integration will be Meta AI, the company's flagship AI assistant. This acquisition underscores the intense competition among tech behemoths to dominate the AI landscape through strategic purchases and talent acquisition.
Earlier this year, Meta invested in Scale AI, a data-labeling startup, in a deal that valued the company at a staggering $29 billion and brought its 28-year-old CEO, Alexandr Wang, into Meta's orbit. The purchase of Manus is a continuation of this aggressive investment strategy.
Geopolitical Context and Future Implications
Manus is part of a growing trend of Chinese-founded tech firms establishing their domicile in Singapore. This move to the trade-focused city-state is widely seen as a strategy to mitigate operational risks arising from Sino-U.S. geopolitical tensions. Beijing had shown interest in supporting Manus, highlighting the startup's strategic importance.
For Meta, this acquisition provides a significant boost to its AI agent technology, potentially allowing it to offer more autonomous and advanced AI features to its billions of users worldwide. The deal signals that the race for AI supremacy is far from over, with major players willing to spend billions to secure cutting-edge technology and expertise.
