Meta Acquires Singapore-Based AI Startup Manus for $2 Billion to Boost Facebook Instagram and WhatsApp AI

Meta Acquires Manus to Expand Its AI Business and Revenue Streams

Meta Platforms has agreed to acquire Manus, a Singapore-based artificial intelligence startup with Chinese origins, in a deal reportedly worth between US$2 billion and US$3 billion.

The acquisition allows Meta to integrate Manus’ AI technology into its consumer and business products, including Facebook, Instagram, WhatsApp, and its existing Meta AI service, while continuing to operate Manus independently from Singapore.

Why Manus Has Attracted Global Attention

Manus gained prominence earlier this year when it released what it claimed to be the world’s first general AI agent capable of performing tasks autonomously with minimal prompting.

The AI agent demonstrated abilities such as screening job candidates, planning trips, and analysing stock portfolios, and the company asserted that its performance surpassed OpenAI’s DeepResearch.

The startup, originally founded in Beijing under its parent company, Butterfly Effect Technology, relocated to Singapore mid-year to mitigate risks from Sino-US tensions.

Beijing has reportedly shown interest in supporting Manus, which also maintains a strategic partnership with Alibaba for AI collaboration.

A Rapid Deal With Clear Financial Returns

Meta struck the agreement in around 10 days, according to Bloomberg, purchasing all existing investor stakes.

Manus had raised US$75 million earlier this year at a valuation of around US$500 million, led by US venture firm Benchmark, with other backers including Tencent, ZhenFund, and HSG.

At the time of the acquisition, Manus was generating an annual revenue run rate of $125 million from subscriptions to its AI agent.

For Meta, this represents a rare opportunity to acquire an AI product that is already producing revenue, potentially offsetting parts of its broader US$60 billion AI infrastructure spending.

Addressing Geopolitical Concerns

Meta confirmed that following the acquisition, Manus will have no remaining ties to Chinese investors and will discontinue all operations in China.

AMeta spokesperson shared,

“There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China.”

The move comes amid heightened scrutiny in the US over investments in Chinese-founded technology firms.

Senator John Cornyn, a senior member of the Senate Intelligence Committee, previously questioned Benchmark’s investment in Manus, reflecting broader bipartisan concerns about US capital flowing into Chinese AI ventures.

Zuckerberg’s AI Ambitions Take Shape

For Meta CEO Mark Zuckerberg, Manus offers a dual advantage: a technology that can be integrated across Meta’s platforms and a revenue-generating AI product at a time when investor attention on Meta’s AI spending is intensifying.

The Manus AI agent’s capabilities align with Meta’s vision to make AI more central to everyday business and consumer services.

With millions of users already signed up and a membership model generating recurring revenue, Manus represents a rare instance of an AI startup with both commercial traction and strategic potential for a global tech giant.

Manus’ Journey From Beijing to Singapore

Founded in Beijing in 2022, Manus quickly caught attention in the AI sector and was often compared to China’s DeepSeek.

Its decision to base operations in Singapore reflects a growing trend among Chinese AI firms seeking stability and reduced geopolitical risk while continuing to access global markets.

The acquisition reinforces Meta’s commitment to AI as a core focus, combining technological promise with immediate business returns, and positions the company to compete more aggressively in the evolving AI landscape.