Meta Acquires AI Startup Manus for Over $2 Billion
Meta Platforms has agreed to purchase Manus, a Singapore-based artificial intelligence startup specializing in autonomous agents, in a deal valued at more than $2 billion. This acquisition marks one of the largest in the generative AI sector and highlights Meta’s strategy to integrate advanced AI functionalities into its core social media applications. Manus’s technology enables end-to-end task automation, such as recruiting processes and travel planning, which Meta plans to embed within Facebook, Instagram, and WhatsApp. The move comes as Meta seeks to capitalize on the growing demand for AI-driven productivity tools amid intensifying competition from rivals like OpenAI and Google.
Manus was founded by Chinese entrepreneurs and initially operated from China before relocating its headquarters to Singapore in 2024. To mitigate regulatory scrutiny from U.S. authorities, Meta intends to divest all Chinese ownership stakes in Manus and cease the startup’s operations within China. This restructuring addresses potential national security concerns tied to data handling and technology transfer between the U.S. and China. The deal represents a geopolitical challenge, as it tests the boundaries of cross-border AI acquisitions in an era of heightened U.S.-China tech rivalries. Despite these hurdles, Manus will continue to function independently while accelerating product enhancements under Meta’s umbrella.
The acquisition underscores Manus’s rapid growth trajectory, having achieved over $100 million in annual recurring revenue within eight months of launching its flagship agent platform. Manus boasts millions of users who leverage its agents for white-collar tasks, including candidate screening via integrated APIs and automated itinerary generation using real-time data feeds. Meta’s integration plans involve layering Manus’s capabilities atop its existing Meta AI chatbot, potentially enabling seamless automation across billions of daily active users. This synergy aims to justify Meta’s substantial investments in AI infrastructure, including custom silicon and data centers optimized for large language models.
Broader implications for the AI industry include accelerated consolidation, as big tech firms acquire revenue-generating startups to bypass lengthy internal development cycles. Manus’s valuation reflects the premium placed on proven AI agent technologies, which differ from traditional chatbots by executing multi-step actions autonomously. Analysts note that this purchase positions Meta to compete more effectively in enterprise AI applications, where agents handle complex workflows like supply chain optimization. The deal also signals a shift toward AI-native platforms, where social networks evolve into comprehensive productivity ecosystems.
Meta’s acquisition aligns with its rebranding efforts since 2021, emphasizing metaverse and AI innovations beyond social connectivity. By incorporating Manus’s expertise, Meta gains access to proprietary algorithms for agentic AI, which involve reinforcement learning and natural language processing for task decomposition. This enhances Meta’s competitive edge against platforms like Microsoft’s Copilot and Google’s Gemini, which already offer similar agent functionalities. The transaction, expected to close in early 2026 pending regulatory approvals, could influence future AI mergers by setting precedents for handling international ownership structures.
