Meta Acquires Manus AI in $2B Deal

Meta has officially acquired Manus, an AI startup specializing in task automation agents, in a transaction valued at over $2 billion. This acquisition is highlighted by The Wall Street Journal as one of the largest to date involving a company developed within China's AI ecosystem. The startup, originally founded as Butterfly Effect, launched its general AI agent in March 2025.

The platform is designed to execute complex tasks autonomously rather than merely generating ideas, utilizing models such as Anthropic's Claude 3.5 Sonnet and Alibaba's Qwen. Despite facing skepticism regarding its market reception, Manus claims significant commercial traction, reporting an annualized revenue of over $100 million just eight months after launch. The acquisition follows a strategic pivot by Manus to relocate its headquarters to Singapore and reduce its workforce in Beijing, positioning itself for global expansion under Meta's ownership.

The acquisition of Manus by Meta marks a significant consolidation in the artificial intelligence sector. Valued at more than $2 billion, the deal underscores Meta's aggressive strategy to integrate advanced AI capabilities into its ecosystem. According to reports, this transaction is one of the largest acquisitions yet for a startup nurtured within China's competitive AI landscape.

Manus was reportedly in the midst of seeking a funding round that would have valued the company at $2 billion when Meta approached them. The startup had recently undergone significant operational changes, including laying off most of its Beijing employees during the summer. These moves were part of a broader strategy to shift its headquarters to Singapore, a hub often chosen by tech companies aiming for global reach and regulatory flexibility.

Launched in March 2025, shortly after the emergence of another Chinese startup, DeepSeek, Manus distinguishes itself by claiming to be the first general AI agent. Unlike traditional chatbots that generate suggestions, Manus is engineered to perform complex tasks autonomously. Its capabilities include automating market research, coding, sales data analysis, and even website cloning and creation.

The technology stack of Manus relies on several third-party models. Specifically, it draws from Anthropic's Claude 3.5 Sonnet and various versions of Alibaba's Qwen. However, the startup has not been without controversy. One skeptic described the product as "devilishly optimized for influencers," suggesting that its viral popularity may have outpaced its technical substance. Despite this, the company maintains that it serves the daily needs of millions of users and businesses.

Manus has reported impressive financial metrics for a company so early in its lifecycle. Only eight months after its launch, the startup claims an annualized average revenue exceeding $100 million. This rapid monetization likely played a crucial role in attracting Meta's interest and justifying the multi-billion dollar valuation.

Regarding the future of the product, Xiao Hong, the CEO of Manus, addressed concerns about potential changes following the acquisition. In a company news release, he stated: "Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made." This assurance suggests that Meta intends to preserve the autonomy and functionality that defined the startup's initial success while leveraging its infrastructure for broader scale.