Meta to Acquire Manus in a $2 Billion Deal

Meta has finalized an agreement to take over a Singapore-based AI startup Manus at a valuation of around $2 billion. This is one of the largest and first of its kind, with Meta, a global tech giant, acquiring an Asian firm at a high valuation, bringing a strategic shift toward the commercialization of autonomous AI agents. 

Founded in 2022 by its parent company Butterfly Effect, Manus has quickly emerged as a standout in the AI agent space. The company initially operated research facilities in Beijing and Wuhan before relocating its headquarters to Singapore following a US$75 million Series A funding round in April 2024 led by Benchmark, which valued the firm at US$500 million. According to data cited by The Wall Street Journal, Manus reached US$100 million in annual recurring revenue within just eight months of its March 2024 product launch.

The platform is known for its ability to autonomously execute complex research and coding tasks with minimal human input, using models from providers such as Anthropic and Alibaba. “Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” said Xiao Hong, Chief Executive Officer of Manus.

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The deal comes amid fierce rivalry between Meta Platforms, Microsoft, and OpenAI to dominate the fast-growing AI agent market. While Meta’s AI efforts have traditionally focused on open-source models like Llama, the acquisition of Manus reflects a strategic pivot towards subscription-based, task-oriented enterprise software, comparable to Microsoft Copilot.

Under the agreement, Manus will continue serving existing customers while its technology is integrated into Meta’s broader ecosystem, including business tools across WhatsApp and Instagram. Hong will report to Meta Platforms Chief Operating Officer Javier Olivan, as the company strengthens its internal AI research and commercial capabilities.