UPDATE: Meta has just announced its acquisition of Manus for over $2 billion, marking one of the most significant AI transactions of the year. This deal underscores a growing trend of U.S. tech giants investing in Asian AI companies, particularly as competition intensifies in the sector.
Manus, a Chinese-founded AI startup, gained attention earlier this year for its innovative “general” AI agent capable of executing complex tasks like résumé screening and stock analysis. The company, originally launched in China, has since relocated its headquarters to Singapore in mid-2025.
The urgency of this acquisition highlights Meta’s strategic move to enhance its AI capabilities across its platforms. Manus, created by the AI product studio Butterfly Effect, is touted as the world’s first “general” AI agent. With the ability to autonomously perform tasks such as market research, coding, and data analysis, Manus has rapidly evolved since its launch in March. Recently, the startup reported an impressive milestone, exceeding $100 million in annual recurring revenue and a total revenue run rate surpassing $125 million.
Meta’s acquisition announcement is seen as a pivotal step in integrating Manus’s technology into its broader AI offerings while allowing the startup to continue operating as an independent product. “Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” stated Manus CEO Xiao Hong. Following the acquisition, Xiao will assume a role as vice president at Meta.
The founding team includes co-founder Ji Yichao, known for his technical leadership, and Zhang Tao, who has an extensive background in product management at major tech firms. Their expertise positions Manus as a formidable player in the AI landscape.
However, the acquisition has not come without scrutiny. Concerns regarding Manus’s ties to China were raised earlier this year, with U.S. Senator John Cornyn questioning the implications of American investment in AI companies connected to Beijing amid rising geopolitical tensions. In response, a Meta spokesperson confirmed that the deal would completely sever Manus’s remaining connections to China, stating, “There will be no continuing Chinese ownership interests in Manus AI following the transaction.”
Manus will cease operations in China, including shutting down its AI assistant, Monica, and relocating relevant employees. Notably, Manus employees who join Meta will not have access to customer data, and Meta will geo-block access to its AI models to ensure compliance with U.S. regulations.
As this situation develops, industry observers are watching closely to see how this acquisition will shape the competitive landscape of artificial intelligence. With Meta’s backing, Manus is poised for significant growth, potentially reshaping the way AI integrates into everyday applications and services.
Stay tuned for more updates as this story unfolds.
