Meta Platforms has acquired Manus, a Singapore-based artificial intelligence startup that gained rapid attention in Silicon Valley after its public debut last spring, according to The Wall Street Journal. Manus initially drew interest following a demo video showcasing its AI agent performing tasks such as screening job candidates, planning vacations, and analyzing stock portfolios. At the time, Manus claimed its system outperformed OpenAI’s Deep Research.
The startup experienced rapid growth soon after its launch. In April 2025, weeks after debut, venture capital firm Benchmark led a $75 million funding round that valued Manus at $500 million post-money, with Benchmark general partner Chetan Puttagunta joining Manus’ board. Chinese media reported that prior to this round, the company had already secured $10 million in investments from Tencent, ZhenFund, and HSG, formerly known as Sequoia China. Manus recently disclosed that it has signed up millions of users and achieved over $100 million in annual recurring revenue.
According to WSJ, Meta agreed to pay $2 billion for Manus, matching the valuation the startup had reportedly sought for its next funding round. For Mark Zuckerberg, the acquisition adds an AI product that is already generating significant revenue. The deal comes amid investor scrutiny over Meta’s substantial AI-related spending, which includes an estimated $60 billion investment in infrastructure and data center expansion across the technology sector. Meta has stated that Manus will continue operating independently while its AI agents are integrated into Facebook, Instagram, and WhatsApp, where Meta AI is already active.
The acquisition also raises concerns due to Manus’ origins. The startup’s Chinese founders initially established its parent company, Butterfly Effect, in Beijing in 2022 before relocating operations to Singapore in mid-2025. This background has attracted political attention in Washington, with Senator John Cornyn, a senior member of the Senate Intelligence Committee, previously criticizing Benchmark’s investment in Manus due to US capital involvement in Chinese-linked technology firms. Following the acquisition, Meta confirmed to Nikkei Asia that Manus will sever all ties with Chinese investors and halt operations in China. A Meta spokesperson emphasized that there will be no continuing Chinese ownership and that the company’s services in the country will be discontinued.
By acquiring Manus, Meta gains an established AI platform with proven revenue while addressing concerns over international ownership and geopolitical implications. The startup’s technology and user base are expected to complement Meta AI’s ongoing initiatives across its social media platforms, strengthening the company’s position in artificial intelligence development and deployment globally.
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