Meta Acquires AI Startup Manus in Major Tech Deal
▼ Summary
– Meta Platforms is acquiring the Singapore-based AI startup Manus for $2 billion, matching the valuation it sought for its next funding round.
– Manus gained rapid attention with a viral demo of its AI agent and achieved a $500 million valuation just weeks after its spring launch, backed by firms like Benchmark.
– The startup has shown significant commercial traction, recently announcing millions of users and over $100 million in annual recurring revenue despite early aggressive pricing.
– Meta plans to integrate Manus’s AI agents into its apps like Facebook and Instagram while operating it independently, viewing it as a profitable AI product.
– The acquisition involves a geopolitical wrinkle as Manus has Chinese founders, prompting Meta to state it will sever all Chinese investor ties and cease operations in China.
In a significant move within the competitive artificial intelligence sector, Meta Platforms has finalized a deal to acquire the Singapore-based AI startup Manus for a reported $2 billion. This acquisition underscores Meta’s aggressive push to integrate advanced, revenue-generating AI directly into its core social platforms. The startup, which launched just eight months ago, gained rapid notoriety for a viral demo showcasing AI agents capable of screening job candidates, planning complex vacations, and analyzing financial portfolios, reportedly outperforming established models like OpenAI’s Deep Research.
The company’s trajectory has been remarkably swift. Shortly after its spring debut, Manus secured a $75 million funding round led by venture firm Benchmark, achieving a post-money valuation of half a billion dollars. Other notable investors, including Tencent and ZhenFund, participated in earlier financing. Despite early skepticism over its premium subscription pricing, Manus recently announced it had attracted millions of users and surpassed $100 million in annual recurring revenue, a key metric that undoubtedly caught Meta’s attention.
For Meta CEO Mark Zuckerberg, this purchase addresses a critical concern. While the company has committed tens of billions to AI infrastructure, investors have sought clearer paths to monetization. Manus represents a proven, commercial AI product that is already profitable. Meta plans to operate Manus independently while weaving its AI agent technology into ubiquitous services like Facebook, Instagram, and WhatsApp, where its own Meta AI chatbot already resides.
However, the deal is not without potential complications. Manus was founded by Chinese entrepreneurs under a parent company, Butterfly Effect, initially based in Beijing before relocating to Singapore. This connection has already drawn scrutiny from U.S. lawmakers concerned about technology transfer. Senator John Cornyn, a prominent voice on the Senate Intelligence Committee, publicly criticized Benchmark’s earlier investment, framing it as subsidizing a strategic adversary.
In response to these geopolitical sensitivities, Meta has been proactive. The company has stated clearly that following the acquisition, Manus will sever all ties with Chinese investors and will cease its operations and services within China. This move is likely intended to preempt regulatory challenges in Washington, where bipartisan consensus on taking a firm stance against Chinese technological advancement remains strong. The ultimate success of this high-stakes acquisition will depend not only on seamless technological integration but also on navigating an increasingly complex global regulatory landscape.
(Source: TechCrunch)
