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Meta Acquires Manus AI in $2B Deal
Technology

Meta Acquires Manus AI in $2B Deal

Business InsiderDec 31
3 min read
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Key Facts

  • ✓ Meta acquired Manus, a 'general-purpose' AI startup, for over $2 billion.
  • ✓ Manus co-founder Ji Yichao shared photos linking his past to Mark Zuckerberg's in the 'Facebook House' in Palo Alto.
  • ✓ Ji Yichao dropped out of college to focus on entrepreneurship but later graduated from BISTU in 2018.
  • ✓ Meta's other recent AI acquisition, Scale AI, was also founded by a college dropout, Alexandr Wang.
  • ✓ Manus reported surpassing $100 million in annual recurring revenue prior to the acquisition.

In This Article

  1. Quick Summary
  2. Historical Photos Connect Two Generations of Dropouts
  3. The Acquisition and Business Context
  4. Educational Backgrounds and Industry Trends

Quick Summary#

Meta has officially acquired Manus, a startup specializing in a 'general-purpose' AI agent, in a deal reportedly exceeding $2 billion. The acquisition was highlighted by a unique social media post from Manus co-founder Ji Yichao, who shared historical photos linking his personal history to that of Meta CEO Mark Zuckerberg.

The photos, posted on X, show a young Yichao and a young Zuckerberg working on laptops in what is believed to be the 'Facebook House' in Palo Alto, California. Both men share the distinction of being college dropouts who went on to found major technology companies. The deal represents a significant expansion of Meta's AI capabilities and continues a trend of high-profile acquisitions for the company.

Historical Photos Connect Two Generations of Dropouts#

Ji Yichao, the 32-year-old co-founder and chief scientist of Manus, took to X to share two specific photographs that illustrate the parallel trajectories of his career and that of Mark Zuckerberg. One photo captures a young Yichao working at a laptop, while the other features a young Zuckerberg in a seemingly identical setting. Both images are believed to have been taken inside the 'Facebook House,' a five-bedroom home in Palo Alto, California, where Zuckerberg lived and worked after dropping out of Harvard University in 2004.

Yichao accompanied the images with a poignant caption: "21 years ago and 13 years ago, two dropouts in this same room set out on their own journeys. Today, those paths merge." This statement underscores the symbolic nature of Meta's acquisition of Manus. Just as Meta was co-founded by a college dropout, its latest acquisition comes from a company founded by an entrepreneur who followed a similar path.

The history of the 'Facebook House' adds weight to the imagery. After Zuckerberg's tenure, the property was rented by other budding entrepreneurs and business students, serving as a incubator for tech ambition. Yichao's post suggests that the room itself holds significance as a birthplace for disruptive ideas.

"21 years ago and 13 years ago, two dropouts in this same room set out on their own journeys. Today, those paths merge."

— Ji Yichao, Co-founder and Chief Scientist of Manus

The Acquisition and Business Context#

The acquisition of Manus was officially announced by Meta on a Monday, with the Wall Street Journal reporting the valuation exceeded $2 billion. Manus was launched in March by the Chinese AI product studio Butterfly Effect. By mid-2025, the startup had relocated to Singapore and reported surpassing $100 million in annual recurring revenue.

Ji Yichao served as the public face of Manus during its March launch, introducing its flagship product: an AI agent designed to carry out tasks autonomously. Following the acquisition, Meta has stated it will continue to offer the Manus subscription as a separate business while integrating the startup's technology into its own platforms.

Meta's aggressive move to acquire Manus fits within a broader pattern of high-stakes AI investments. Earlier in the year, Meta acquired Scale AI, another major AI company founded by Alexandr Wang, who also dropped out of college. This strategy highlights Meta's commitment to dominating the AI landscape by securing top-tier talent and technology.

Educational Backgrounds and Industry Trends#

Ji Yichao's educational journey offers a nuanced view of the dropout narrative. According to reports, he began a computer science degree at the Beijing Information Science and Technology University (BISTU) in 2010. He later left the university to focus on entrepreneurship but eventually returned in 2015, graduating in 2018.

The timing of this acquisition coincides with renewed scrutiny regarding the value of college degrees. Many in Generation Z are questioning whether the debt associated with higher education is worth the investment, particularly as the job market evolves rapidly due to artificial intelligence. This debate is further fueled by industry leaders. Fei-Fei Li, a Stanford professor known as the 'Godmother of AI,' recently stated that a college degree matters less when hiring software engineers.

However, data from the New York Federal Reserve suggests that a college degree still offers a financial advantage in the long run, provided students choose their fields wisely. The success of founders like Yichao, Zuckerberg, Bill Gates, Steve Jobs, and Sam Altman continues to fuel the debate on whether formal education or self-driven risk-taking is the better path to success in technology.

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