The global artificial intelligence landscape was reshaped by a seismic corporate maneuver as the Singapore-based AI agent startup Manus elected to forgo a lucrative funding round, reportedly at a $2 billion valuation, in favor of a full acquisition by tech giant Meta Platforms, Inc.[1][2][3]. While the precise financial terms of the deal were not disclosed by either company, sources familiar with the matter indicate the transaction values the rapidly growing firm at an estimated $2 billion to $3 billion, positioning it as one of Meta’s largest acquisitions since WhatsApp and the recent investment in Scale AI.[4][5][1][2]. This strategic move underscores Meta’s aggressive pursuit of general-purpose AI agent technology, viewed by industry leaders as the next critical frontier beyond large language models and simple generative AI.[6][5][2].

Manus, a startup founded by Chinese entrepreneurs under the parent company Butterfly Effect Technology, rose to prominence after the launch of its autonomous AI agent in early 2025.[7][5][1][2]. The company quickly differentiated itself by offering a “general-purpose AI agent” capable of independently performing complex, multi-step digital tasks, a significant leap beyond the standard question-answering capabilities of conventional chatbots.[8][6][5]. The Manus agent, marketed as an “action engine,” demonstrated proficiency in real-world tool execution, including market research, data analysis, and coding, and notably outperformed rival agentic systems on critical AI benchmarks like GAIA.[8][9][5]. This technological superiority and demonstrated real-world utility are the core assets Meta is incorporating, aiming to infuse these advanced capabilities across its vast consumer and enterprise product portfolio, including the development of next-generation features within Meta AI.[10][7][9]. Within months of its launch, the Manus service had reportedly amassed an annual recurring revenue (ARR) exceeding $100 million from its subscription model, a remarkable velocity of growth that attracted both venture capitalists and strategic buyers.[9][5][11][12]. The decision to pivot from a high-profile funding round, which would have substantially increased its $500 million valuation from an earlier $75 million funding round led by Benchmark, signals a clear prioritization of Meta’s resources and global reach over independent capital.[1][11][2].

The integration of the Manus team and technology marks a pivotal moment in Meta’s overarching AI strategy, championed by CEO Mark Zuckerberg, who has emphasized a shift toward task-oriented, autonomous AI agents.[5][12]. The goal is to evolve the user experience from conversational assistance to powerful tools that can accomplish complex objectives on behalf of the user, such as executing multi-step business workflows or detailed personal research across the web.[8][5][2]. Manus’s established, customer-facing subscription service, which serves millions of users and businesses, provides Meta with immediate, proven agent technology and a direct revenue stream, a critical factor as the company spends billions on AI infrastructure and research.[6][5][2][12]. Importantly, Meta has committed to allowing Manus to continue operating and selling its existing service independently from its base in Singapore, while simultaneously integrating the agent capabilities into Meta's own products like Meta AI, WhatsApp, and Facebook.[10][7][9][5]. This dual strategy suggests Meta is looking to maintain the startup's successful business model and product velocity while maximizing the technological transfer into its core platforms.[9]. The founder and CEO of Manus, Xiao Hong, is set to join Meta as a Vice President, a key indicator that this is more than an asset purchase, representing a significant talent acquisition intended to shape Meta's AI product roadmap.[5][2].

The acquisition also carries significant geopolitical and competitive weight. Manus’s parent company, Butterfly Effect Technology, originated in China, though it had recently relocated its headquarters and core operations to Singapore, a move reflective of a broader trend among Chinese-founded technology firms seeking to mitigate risks associated with Sino-U.S. geopolitical tensions.[7][9][1]. Following the acquisition, Manus is reportedly severing ties with its Chinese investors and letting go of its China-based employees, a step that further cements its new, Meta-controlled international identity and streamlines its regulatory profile for operation under a major U.S. tech company.[9]. The deal, therefore, not only bolsters Meta's technological arsenal against primary competitors like OpenAI, whose 'DeepResearch' agent Manus had claimed to outperform, but also represents one of the first major acquisitions of a startup with such deep Chinese roots by a leading American tech firm in the advanced AI space.[7][9][1][13]. The multi-billion dollar valuation, effectively side-stepping an already hot funding market, validates the explosive potential and commercial viability of the "general Agent track" within the AI industry, signaling to the wider market that autonomous agents are rapidly transitioning from conceptual models to essential, large-scale application interfaces.[2].