Meta Platforms Inc. has agreed to acquire Manus, a fast-growing artificial intelligence (AI) startup based in Singapore, as the Facebook and Instagram owner accelerates its push into AI agents across its platforms.
Meta did not disclose financial terms of the deal, but The Wall Street Journal and other news outlets reported the acquisition values Manus at more than $2 billion. People familiar with the matter said the agreement was reached in roughly 10 days, underscoring Meta CEO Mark Zuckerberg’s urgency to strengthen the company’s AI capabilities amid intensifying competition from rivals Google and OpenAI.
Founded by parent company Butterfly Effect, which originated in China before relocating to Singapore, Manus launched its first general-purpose AI agent earlier this year. The product lets users automate tasks such as research, coding, resume screening, travel planning and stock analysis through paid subscriptions.
Earlier this month, Manus said it surpassed $100 million in annual recurring revenue (ARR) just eight months after launch.
“Manus is already serving the daily needs of millions of users and businesses worldwide,” Meta said in a statement on Monday. The company said it plans to scale the service and integrate Manus’ AI agents across its consumer and business offerings, including Meta AI.
Manus CEO Xiao Hong said the acquisition would allow the company to grow on a “stronger, more sustainable foundation” while preserving how the platform operates. Manus confirmed it will continue selling subscriptions through its own app and website and will maintain its base in Singapore, where most of its employees are located.
Before the acquisition, Manus had attracted backing from prominent investors, including Tencent Holdings, ZhenFund and HSG, formerly known as Sequoia China, as well as U.S. venture capital firm Benchmark. Benchmark led a $75 million funding round in April that valued the startup at about $500 million. Meta confirmed that all existing investors have been bought out as part of the transaction.
Addressing geopolitical concerns, a Meta spokesperson said there would be “no continuing Chinese ownership interests in Manus AI” following the deal and that the company would discontinue its services and operations in China.
The acquisition marks one of Meta’s most significant AI bets to date. In June, the company invested $14.3 billion in AI data firm Scale AI and hired its CEO, Alexandr Wang, to help lead a team focused on developing advanced AI systems. Zuckerberg has made AI a top priority as Meta seeks to turn years of heavy investment in AI research into commercial products and revenue.
Analysts say the purchase gives Meta a functioning AI business with paying customers and proven infrastructure, potentially accelerating its efforts to compete with ChatGPT, Google’s Gemini and other leading AI platforms. However, the deal could still draw regulatory scrutiny due to Manus’ origins and the growing global race for dominance in AI.
“Meta needs to enter the LLM subscription game,” industry observer JP Morgenthal says. “All their investments are tied up in their platforms, but don’t require users to pay, not to mention that they don’t even work well against the data in their platforms.”
