Meta is doubling down on artificial intelligence with the acquisition of Singapore-based AI startup manus, in a deal sources value at over $2 billion.The move signals the tech giantS continued investment in AI capabilities across its platforms-Facebook, Instagram, and the recently launched Meta AI app [[1]]-as competition intensifies among tech leaders. Manus, known for its versatile “general purpose” AI agent, will discontinue operations in China as part of the agreement, marking a strategic shift for the company and Meta.
Meta Bolsters AI Capabilities with New Acquisition
Technology giant Meta has reached an agreement to acquire artificial intelligence (AI) startup Manus, strengthening its strategy to integrate AI across its widely used products, including Facebook and Instagram. While the precise financial terms of the deal remain undisclosed, the Wall Street Journal reports the acquisition is valued at over $2 billion.
Manus – A Rapidly Growing, Versatile AI Tool
Singapore-based Manus, which also has roots in China, unveiled its first “general purpose” AI agent earlier this year. The platform is positioned as a versatile tool for a range of tasks, from research to code writing, and operates on a subscription model, providing users access to AI-powered services.
“Manus already serves millions of users and businesses with their everyday needs around the world,” Meta stated in a release on Monday. The company plans to expand the service’s availability, integrating the AI agents into both consumer and business products, including Meta AI.
Manus co-founder and CEO Xiao Hong emphasized that the move will allow the company to “build on a stronger, more sustainable foundation, without changing Manus’ operating principles or decision-making processes.” Manus confirmed it will continue to offer and support subscriptions through its app and website.
Significant Financial Traction and Investor Base
The startup has experienced rapid growth, recently announcing it surpassed $100 million in annual recurring revenue (ARR) just eight months after its launch. Early investors in Manus include Chinese firm Tencent Holdings, ZhenFund, and HSG. The platform was initially developed by Butterfly Effect (also known as monica.im), a company founded in China before relocating to Singapore.
Strategic Investment in the Future of AI
A Meta representative confirmed on Tuesday that following the deal’s completion, “there will be no more China-based ownership interests in Manus AI,” and the company will discontinue its services and operations in China. This acquisition is the latest in a series of significant moves by the Silicon Valley company to solidify its position in the AI sector, following its $14 billion investment for a 49% stake in Scale AI in June. The move underscores the growing competition among tech giants to secure leading AI technologies.
