Meta Buys AI Startup Manus in a deal worth over $2 billion, marking a significant move in the artificial intelligence race. The Singapore-based company brings cutting-edge autonomous AI agent technology that will integrate into Meta’s popular platforms, including Facebook, Instagram, and WhatsApp.
Deal Overview:
Meta announced it will continue operating Manus as a standalone service while integrating its technology intothe Meta AI chatbot. Moreover, Manus CEO Xiao Hong joins Meta as Vice President to lead AI agent development efforts.
| Category | Details |
|---|---|
| Purchase Price | Over $2 billion |
| Annual Revenue | $125 million recurring |
| User Base | Several million users |
| Subscription Cost | $39-$199 per month |
| Team Size | Around 100 staff globally |
What Manus Does:
Manus operates as a highly sophisticated digital assistant that handles complex tasks autonomously. Additionally, the platform specializes in market research, coding, and data analysis. Businesses can purchase subscriptions starting at just $20 monthly for basic services.
The system recently launched version 1.5, which cuts task processing time from 15 minutes to 4 minutes. Furthermore, it can build complete web applications, including backend and database components.
Technical Capabilities:
Since launching in March 2025, Manus has processed over 147 trillion tokens and created more than 80 million virtual computers. The platform runs ona multi-agent architecture using Anthropic’s Claude Sonnet and various open-source technologies.
Company Background:
Manus dates back to 2022 when founder Xiao Hong established Butterfly Effect in China. Initially, the company launched Monica, a browser extension AI assistant that gained over 10 million users. Subsequently, the team relocated to Singapore in May 2025 to reduce geopolitical risks.
The founding team includes CEO Xiao Hong, Chief Scientist Ji Yichao, and Product Partner Zhang Tao. Notably, Ji Yichao dropped out of school and built the Mammoth Browser at age 17.
Strategic Importance:
This acquisition fills a major gap in Meta’s AI strategy. While competitors like OpenAI, Anthropic, and Google dominate AI headlines, Meta’s homegrown Llama models have lost ground recently. Consequently, Mark Zuckerberg invests billions pursuing what he calls “personal superintelligence.”
Political Concerns:
The deal raises questions in Washington and Beijing because of Manus’s Chinese origins. However, Meta assured that after purchase, Manus will not maintain any Chinese owners or operations in China. Previously, the US Treasury Department reviewed Benchmark’s investment over potential violations of the 2023 restrictions.
Market Position:
At acquisition time, Manus ranked as Meta’s third-largest purchase after WhatsApp ($19 billion) and Scale AI ($15 billion). An early investor noted that Mark Zuckerberg had been a longtime Manus user himself.
Future Plans:
Moving forward, the Manus team focuses on developing AI agents for Meta’s consumer and business products. The service remains available through its app and website while operating independently from Singapore headquarters.
Meta Buys AI Startup Manus at a crucial moment when investors question whether Meta’s massive AI spending will generate meaningful revenue soon.
