Meta to Acquire Startup Manus in US$2 Billion AI Agent Push

Meta Platforms has finalized a definitive agreement to acquire Singapore-based AI startup Manus for a valuation exceeding US$2 billion. This transaction represents one of the first major acquisitions of an Asian-origin AI startup by a leading US technology company, bringing a strategic shift toward the commercialization of autonomous AI agents.

The acquisition aims to bridge the gap between foundational model development and practical, high-value enterprise applications. By integrating Manus, Meta Platforms will gain immediate access to a proven architecture for executing complex research and coding tasks with minimal human intervention. "Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," says Xiao Hong, Chief Executive Officer, Manus.

Manus, founded by the parent company Butterfly Effect in 2022, initially operated research facilities in Beijing and Wuhan. The company transitioned its headquarters to Singapore after securing investment from Benchmark. This relocation followed a US$75 million Series A funding round in April 2024, which valued the company at US$500 million. According to data cited by The Wall Street Journal, the startup achieved rapid market penetration, reporting US$100 million in annual recurring revenue within eight months of its March 2024 launch.

The deal surfaces during a period of intense competition among Meta Platforms, Microsoft, and OpenAI to dominate the AI agent sector. These software tools are capable of autonomously navigating web environments, generating custom websites, and producing technical reports. Previously, the AI strategy of Meta Platforms centered on open-source large language models such as Llama. The acquisition of Manus suggests a diversification toward subscription-based, task-oriented software models, aligning the portfolio of the company with established enterprise tools like Microsoft Copilot.

Under the terms of the agreement, Manus will continue to operate its service for existing paying users while Meta Platforms integrates the technology into its broader ecosystem. Hong will report to Javier Olivan, Chief Operating Officer, Meta Platforms. This leadership structure follows a recruiting initiative by Meta Platforms intended to fortify internal research capabilities after facing development challenges in early 2024.

The transaction involves several critical technical and financial data points:

• Valuation Multiples: The US$2 billion price reflects a significant premium over the previous US$500 million valuation of Manus. This growth is driven by the ability of the startup to utilize models from providers such as Anthropic and Alibaba to execute multi-step workflows.

• Geopolitical Reconfiguration: To mitigate regulatory scrutiny regarding its Chinese roots, Manus has shelved plans for a domestic Chinese release. The company has consolidated its 100-employee workforce in Singapore.

• Personnel Integration: This acquisition follows the purchase of a 49% stake in Scale AI by Meta Platforms, which brought Alexandr Wang, Chief AI Officer, Scale AI, into a primary advisory role.

Market analysts expect this acquisition to accelerate the deployment of B2B tools by Meta Platforms. The integration is projected to scale Manus’ user base by leveraging the global infrastructure of Meta Platforms. This move may establish a new industry benchmark for the cost-to-performance ratio of autonomous AI agents in the corporate sector. Meta Platforms says it plans to scale this service to many more businesses, including those utilizing WhatsApp and Instagram for commercial operations.