Meta to acquire AI startup Manus in deal valued at over $2 billion

Meta has agreed to buy artificial intelligence startup Manus, doubling down on its aggressive bid to supercharge AI across Facebook, Instagram and its wider product portfolio.

The California tech giant declined to reveal the exact financial terms of the deal, but The Wall Street Journal reported that the acquisition is valued at more than $2 billion (€1.7 billion).

Manus, a Singapore-based platform with some Chinese roots, launched its first “general-purpose” AI agent earlier this year, positioning itself as a versatile tool for everything from research to coding. The platform operates on a paid subscription model, offering users access to its AI-powered services.

"Manus is already serving the daily needs of millions of users and businesses worldwide," Meta said in a Monday announcement, adding that it plans to scale the service - with Manus set to "deliver general-purpose agents across our consumer and business products, including in Meta AI."

Xiao Hong, the CEO of Manus, said the move would allow the company to “build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made." Manus confirmed it would continue selling and operating subscriptions through its own app and website.

The startup's rise has been rapid. Earlier this month, Manus revealed it had surpassed $100 million in annual recurring revenue - just eight months after launch.

Some of Manus’ early backers reportedly included China’s 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.

A Meta spokesperson confirmed on Tuesday that there would be "no continuing Chinese ownership interests in Manus AI" following the transaction, and that the company would wind down its services and operations in China.

The deal is the latest in a series of high-profile moves by the Silicon Valley group to strengthen its foothold in the AI sector by snapping up fast-growing start-ups. In June, Meta spent $14 billion (€11.9 billion) to acquire a 49% stake in Scale AI.