Meta Acquires Manus AI for Over $2 Billion to Strengthen AI Agent Capabilities

Source: CryptoTale Original Title: Meta to Buy Manus AI in Deal Valued Above $2 Billion Range Original Link: https://cryptotale.org/meta-to-buy-manus-ai-in-deal-valued-above-2-billion-range/

Overview

Meta gains a revenue-generating AI agent platform through the acquisition of Manus. The deal ends Chinese ownership ties and halts Manus AI operations within China, while strengthening Meta’s push into AI agents designed for business task automation.

Meta Platforms Inc. agreed to acquire Manus, a Singapore-based AI agent startup founded by Chinese entrepreneurs. The purchase supports Meta’s plan to build products and revenue from its expanding artificial intelligence budget. People familiar with the matter said the deal values Manus at more than $2 billion, making it a rare Asian tech acquisition.

Acquisition Structure and Operating Plan

Meta said it will keep operating and selling the Manus service after closing and plans to integrate Manus into consumer and business products, including Meta AI. The transaction will leave no continuing Chinese ownership interests, and Manus will discontinue services and operations in China.

Manus operates through a parent company called Butterfly Effect Pte., which began in China and later moved its headquarters to Singapore. The acquisition will buy out existing investors. The deal process moved quickly, with the agreement coming together in about 10 days.

Manus AI Capabilities and Revenue Profile

Manus built a following after previewing an AI agent that can complete multi-step tasks with limited prompting. The tool can compile deep research reports, create basic websites from instructions, screen resumes, draft travel itineraries, and summarize datasets for business users.

Manus sells the agent through subscription plans. The company reached an annual revenue run rate of $125 million earlier in 2025. Manus raised $75 million in capital earlier in 2025 at an implied valuation close to $500 million, with a U.S. venture firm as lead investor.

Meta will acquire Manus’s technology and leadership group. CEO Xiao Hong will report to Meta COO Javier Olivan. Meta Chief AI Officer Alexandr Wang welcomed the Manus team, highlighting their expertise in exploring the capability potential of today’s AI models to build powerful agents.

Strategic Significance and Competitive Context

Meta has treated AI as its top corporate priority, directing spending toward data centers, advanced chips, and researcher hiring. The Manus acquisition supports Meta’s efforts in AI agents beyond chatbots. AI agents aim to take actions without constant user supervision and execute workflows automatically.

Meta already distributes Meta AI through Facebook, Instagram, and WhatsApp, and offers AI features through smart glasses. By adding Manus, Meta can expand agent functions across messaging, creation tools, and business services.

However, the purchase could attract regulatory attention. Manus originated in China and moved to Singapore amid rising U.S.-China trade tensions. U.S. lawmakers have criticized American funding for AI firms with China ties, which may increase scrutiny of cross-border deals. Investors continue to question whether Meta’s substantial spending will translate into near-term profitability, though the company plans to debut a new state-of-the-art model next spring.