In a major strategic move to bolster its artificial intelligence capabilities, Meta has acquired the Singapore-based AI agent startup Manus. The deal, valued at over USD 2 billion, represents one of Meta's most significant AI acquisitions to date and comes with a notable geopolitical stipulation: the complete severance of Manus's ties with China.
The acquisition, reported by the Wall Street Journal and confirmed by Meta, underscores the intense competition among tech giants to lead in the development of advanced AI agents. Manus, which launched its general-purpose AI agent service just eight months ago, had already achieved a remarkable milestone of USD 100 million in annual recurring revenue, signaling rapid market adoption for its research, coding, and planning tools.
Deal Financials & Company Metrics
- Acquisition Price: Over USD 2 billion
- Target Company: Manus AI (Singapore-based)
- Manus's Annual Recurring Revenue (ARR): USD 100 million (achieved within 8 months of launch)
- Manus Employee Count: 105 (based in Singapore, Tokyo, and San Francisco post-restructuring)
Meta's Aggressive AI Investment Strategy
This acquisition is the latest in a series of aggressive investments by Meta into artificial intelligence infrastructure and talent. The company has publicly committed to spending billions on AI compute resources. Earlier in 2025, Meta made a USD 14.3 billion investment in AI data company Scale AI and recruited its CEO to help develop "superintelligence." The purchase of Manus suggests that while Meta is heavily investing in its in-house AI development, it is also actively seeking to accelerate its roadmap by integrating proven external technology and teams. This dual-track approach highlights the fierce pressure Meta faces from rivals like Google and OpenAI in the race to deploy useful, consumer-facing AI.
Context of Meta's Recent AI Investments
- Scale AI Investment: USD 14.3 billion (June 2025)
- Other AI Acquisitions/Investments: Includes Limitless AI.
- Strategic Goal: To accelerate development of "superintelligence" and general-purpose AI agents across its product suite.
The Rapid Rise and Chinese Roots of Manus
Manus's journey to a multi-billion dollar acquisition has been exceptionally fast. The startup, which offers a subscription-based AI agent capable of deep research, vacation planning, and stock analysis, was founded by its parent company Butterfly Effect. This entity was originally established in China, with offices in Beijing and Wuhan, before relocating its headquarters to Singapore around the time of Manus's launch. This Chinese heritage, coupled with early backing from investors like Tencent Holdings, had already drawn scrutiny from U.S. lawmakers concerned about American capital funding China's AI development. Senator John Cornyn had previously criticized Benchmark's investment in Manus, questioning the wisdom of subsidizing a geopolitical adversary's technological advancement.
A Preemptive Move to Address Geopolitical Concerns
Acknowledging the potential for significant regulatory and political backlash, Meta has proactively mandated a clean break from China as a condition of the deal. In a statement, a Meta spokesperson confirmed that following the transaction's close, there would be "no continuing Chinese ownership interests in Manus AI," and the company would discontinue all services and operations in China. Reports indicate that Manus has already laid off most of its Chinese-based employees, consolidating its workforce of 105 staff in Singapore, Tokyo, and San Francisco. This move is a clear attempt by Meta to insulate the acquisition from the ongoing U.S.-China tech cold war and secure necessary approvals.
Key Conditions of the Acquisition
- China Exit Mandate: Manus must sever all remaining ties with China.
- Ownership: No continuing Chinese ownership interests permitted post-transaction.
- Operations: Manus will discontinue all services and operations in China.
Integration Plans and Future Roadmap
Meta has stated that it plans to operate Manus as a standalone service initially, continuing to sell subscriptions through its own app and website. However, the long-term strategy involves deep integration. Manus's general-purpose AI agent technology is expected to be woven into Meta's core consumer and business products, potentially supercharging features within Meta AI, Facebook, Instagram, and WhatsApp. Manus CEO Xiao Hong framed the acquisition as an opportunity to build on a "stronger, more sustainable foundation" without altering the startup's operational DNA. For Meta, the deal delivers not just technology, but a rapidly growing user base and a team that has demonstrated an ability to ship and monetize a complex AI product.
The Broader Implications for the AI Industry
Meta's acquisition of Manus is a bellwether for the current state of the AI industry. It highlights the immense value placed on teams that can build and scale sophisticated AI agent platforms with real user traction. Furthermore, it illustrates how geopolitical tensions are directly shaping corporate strategy in the tech sector. Companies with cross-border ties, particularly involving China, must now navigate an additional layer of complexity in funding and exit scenarios. For Meta, the deal is a high-stakes bet that the advanced capabilities of Manus are worth both the financial cost and the political capital required to sanitize its origins, all in pursuit of closing the gap in the AI agent race.