Meta Acquires Singapore AI Startup Manus for Over $2 Billion in Push for Advanced Agents
Meta Platforms Inc. agreed to buy Manus, a Singapore-based artificial intelligence startup with Chinese founders, for more than $2 billion.
The acquisition, announced on Monday, represents a step by the Facebook parent to strengthen its position in AI agents amid competition from companies such as Alphabet Inc.'s Google and Microsoft Corp.
“Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” Xiao Hong, Manus’s co-founder and chief executive, said in an announcement Monday.
Manus, operating under parent company Butterfly Effect founded in 2022, develops AI agents that execute tasks with minimal human input and claims performance surpassing rivals like OpenAI's offerings.
The startup, which has about 100 employees mostly in Singapore, raised $75 million in April at a $500 million valuation from investors including Benchmark, HSG, ZhenFund and Tencent Holdings Ltd.
Manus announced in December that it had exceeded $100 million in annual recurring revenue eight months after launch and counted millions of users, some paying for services in analysis and coding.
Meta approached Manus as the startup sought new funding at a $2 billion valuation and plans to continue operating and selling its subscription service while integrating it into products like Instagram and WhatsApp.
Manus relocated its headquarters from China to Singapore earlier this year to mitigate risks from U.S.-China tensions, and its products remain unavailable in China.
The startup has processed over 147 trillion tokens and powered more than 80 million virtual computers.
“We plan to scale this service to many more businesses,” Meta said in its announcement about the deal.
Manus holds a strategic partnership with Alibaba Group Holding Ltd. to collaborate on AI models.
The deal follows Meta's earlier investments in AI, including a 49% stake in Scale AI valued at $29 billion and its acquisition of WaveForms.
