Meta has acquired Manus, a Chinese-founded artificial intelligence startup, in a blockbuster deal valued at over $2 billion, marking one of the most significant acquisitions of an Asian AI company by a US tech giant. The acquisition represents Meta’s aggressive push to scale general-purpose AI agents across its platform ecosystem.
Manus, which launched in March 2025 by Chinese AI product studio Butterfly Effect, bills itself as the world’s first “general” AI agent capable of autonomously executing complex tasks. The AI system can independently handle résumé screening, stock analysis, market research, coding, data analysis, design work, and slide creation directly through web browsers. The startup relocated its headquarters from China to Singapore in mid-2025, positioning itself as a regional AI hub.
The company has demonstrated remarkable growth, surpassing $100 million in annual recurring revenue with total revenue run rates exceeding $125 million when including usage-based fees. In April, Manus raised $75 million in funding led by Benchmark at a $500 million valuation. The startup now employs approximately 105 people across Singapore, Tokyo, and San Francisco, with plans to open a Paris office.
Founder Xiao Hong, known as “Red” in China’s tech circles, will assume a vice president role at Meta following the acquisition. The 33-year-old entrepreneur previously founded Nightingale Technology and created Monica, an AI-powered browser extension. Co-founder Ji Yichao (“Peak Ji”), named to MIT Technology Review’s Innovators Under 35 list, serves as chief scientist and led technical development.
Meta plans to maintain Manus as a stand-alone product while integrating its technology into Meta’s broader AI offerings. The deal addresses concerns about Manus’s Chinese ties—Meta confirmed it will completely sever all remaining Chinese ownership interests, shut down operations in China including the Monica AI assistant, and relocate relevant employees. The acquisition gives Meta both an immediate AI revenue stream and significant distribution advantages in the competitive AI agent market.
Key Quotes
Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made
Manus founder and CEO Xiao Hong explained the rationale behind accepting Meta’s acquisition offer, emphasizing continuity for customers while gaining the resources and scale of a major tech platform.
There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China
A Meta spokesperson addressed national security concerns about the acquisition, clarifying that the deal completely severs Manus’s ties to China, including shutting down the Monica AI assistant and ceasing all Chinese operations.
Manus can independently execute complex tasks, such as market research, coding, and data analysis
Meta’s acquisition announcement highlighted the autonomous capabilities that make Manus valuable, positioning it as a general-purpose AI agent that can handle sophisticated business workflows without human intervention.
Our Take
Meta’s $2 billion bet on Manus reveals a critical strategic shift in the AI wars—the race is moving beyond foundation models to autonomous agents. While competitors like OpenAI and Anthropic focus on increasingly powerful LLMs, Meta is acquiring proven AI agent technology with actual revenue traction. Manus’s $100+ million ARR demonstrates real market demand for AI systems that execute tasks rather than just generate content.
The geopolitical dimension is equally significant. By completely severing Chinese ties and relocating operations, Meta is navigating the increasingly fraught US-China tech rivalry while still accessing Chinese AI innovation. This acquisition may establish a template for future deals: acquire the talent and technology, but eliminate the geopolitical risk. The question remains whether Manus can maintain its innovation velocity under Meta’s ownership, or if this becomes another case of a promising startup being absorbed into a tech giant’s broader strategy.
Why This Matters
This acquisition signals a pivotal moment in the global AI race, demonstrating how US tech giants are aggressively pursuing AI capabilities regardless of geographic origin. Meta’s $2+ billion investment in Manus represents one of the largest AI acquisitions to date and validates the emerging market for autonomous AI agents that can independently execute complex business tasks.
The deal highlights the strategic importance of AI agents as the next frontier beyond chatbots and generative AI tools. Companies are racing to develop systems that don’t just respond to prompts but can autonomously complete multi-step workflows—from market research to coding—potentially transforming how businesses operate.
The acquisition also underscores the geopolitical complexities of AI development. Manus’s relocation from China to Singapore and Meta’s commitment to severing all Chinese ties reflects growing tensions around AI technology transfer and national security concerns. This could set a precedent for how Western tech companies navigate acquisitions of AI startups with Chinese origins, potentially reshaping the global AI investment landscape and accelerating the bifurcation of AI ecosystems along geopolitical lines.
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