In a major move to bolster its artificial intelligence capabilities, Meta, the parent company of Facebook, has announced the acquisition of the Singapore-based AI startup Manus. The deal, valued between $2 billion and $3 billion, marks one of Meta's significant bets on the future of autonomous AI agents.
The Deal and Its Strategic Importance
While Meta did not publicly disclose the financial terms, a source with direct knowledge confirmed the multi-billion dollar valuation. This represents a substantial markup for Manus, which had raised $75 million earlier this year at a valuation of approximately $500 million. The startup, originally founded in China, is backed by its parent Beijing-based Butterfly Effect Technology and notable investors like HSG (formerly Sequoia Capital China), ZhenFund, and the Chinese internet conglomerate Tencent Holdings.
Manus had gained significant attention in 2025 when its launch of what it claimed was the world's first general AI agent went viral on the social media platform X (formerly Twitter). The agent was praised for its ability to make decisions and execute tasks autonomously with minimal prompting, a step beyond conversational AI chatbots like ChatGPT. This innovation led many analysts to hail it as "China's next DeepSeek," and it even received positive coverage on Chinese state television.
Navigating Geopolitical Tensions
The acquisition occurs against a backdrop of intense technological competition between the United States and China. Analysts had warned that the deal could face regulatory hurdles due to Manus's Chinese origins. Jeremy Goldman, senior director at Emarketer, told Reuters that "scrutiny is almost guaranteed; anything with Chinese roots and 'AI' in the headline now triggers Washington's reflexes."
Anticipating these concerns, Meta issued a clear clarification regarding Manus's operational ties to China. A Meta spokesperson stated, "There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China." This move aligns with a trend of Chinese tech firms relocating headquarters; Manus itself had moved from China to Singapore months prior to avoid being entangled in the crossfire of US-China tensions.
Meta's AI Ambitions and Integration
The purchase is a cornerstone of CEO Mark Zuckerberg's strategy to make AI the company's top priority. Meta is investing billions in hiring researchers, constructing data centers, and developing advanced AI models. The Manus team, comprising about 100 employees based in Singapore, will be integrated into this vision.
Alexandr Wang, Meta’s Chief AI Officer who joined in May 2025, welcomed the Manus team via a post on X. He wrote, "Excited to announce that @ManusAI has joined Meta to help us build amazing AI products! The Manus team in Singapore are world class at exploring the capability overhang of today’s models to scaffold powerful agents."
Manus CEO Xiao Hong (referenced as @Red_Xiao_ and Xiao in reports) responded enthusiastically, highlighting the transformative potential of the partnership. "The era of AI that doesn't just talk, but acts, creates, and delivers, is only beginning," he wrote. "And now (with Meta), we get to build it at a scale we never could have imagined." Before the acquisition, Manus was generating an annual revenue run rate of $125 million by selling its AI agent to businesses through subscriptions.
This acquisition signals Meta's aggressive push to lead in the next phase of AI development, focusing on actionable and autonomous agents, while carefully navigating the complex geopolitical landscape that defines the global tech industry.
