Meta Drops $2 Billion Bombshell: Acquires Viral AI Agent Startup Manus to Supercharge Its AI Empire
In a blockbuster move that has sent shockwaves through the tech world, Meta Platforms has acquired Singapore-based AI startup Manus in a deal valued at more than $2 billion. Announced in late December 2025 and dominating headlines into the new year, this acquisition marks one of Meta’s most aggressive plays yet in the race to dominate practical, real-world artificial intelligence.
Manus, founded by Chinese entrepreneurs and initially tied to Beijing-based Butterfly Effect Technology, burst onto the scene in early 2025 with what it claimed was the world’s first truly autonomous general-purpose AI agent. Unlike traditional chatbots such as ChatGPT that require repeated prompting, Manus’s technology can independently plan, execute, and complete complex tasks — from conducting deep market research and coding projects to screening job candidates, planning vacations, and analyzing stock portfolios.
The startup went viral on platforms like X (formerly Twitter) after releasing stunning demo videos showcasing its capabilities. It quickly scaled to impressive commercial success, achieving an annual recurring revenue (ARR) run rate exceeding $125 million within months of launch through paid subscriptions starting at around $20 per month for enterprises and individuals. Backed by prominent investors including Benchmark Capital, Tencent, ZhenFund, and HSG (formerly Sequoia China), Manus had raised $75 million earlier in 2025 at a $500 million valuation before Meta swooped in.
Meta’s statement emphasized the strategic fit: the company plans to continue operating and selling the Manus service while integrating its advanced agent technology across its vast ecosystem — including Meta AI, Facebook, Instagram, WhatsApp, and Messenger. CEO Mark Zuckerberg, who has repeatedly called AI the company’s top priority, sees this as a key step toward realizing his vision of “personal superintelligence” and shifting from experimental models to monetizable, task-oriented AI that delivers real value to users.
The deal also carries geopolitical weight. Manus relocated its operations to Singapore earlier in 2025, distancing itself from China amid rising U.S.-China tech tensions. Meta has confirmed that post-acquisition, there will be “no continuing Chinese ownership interests” and that it will wind down any remaining operations in China. This move allows Meta to tap into cutting-edge talent and technology developed in Asia’s thriving AI ecosystem while navigating regulatory scrutiny.
Analysts view the acquisition as a smart response to investor concerns over Meta’s massive AI infrastructure spending (with 2025 capex estimates in the tens of billions). Manus brings proven monetization — a rarity in the hype-heavy AI space — and positions Meta to compete more directly with rivals like OpenAI, Google, and Anthropic in the emerging era of agentic AI, where systems act autonomously rather than just converse.
As one industry observer put it, “Meta isn’t just buying AI — it’s buying execution at scale.” With Manus’s team (including CEO Xiao Hong, who will report to Meta COO Javier Olivan) joining the fold, the social media giant is betting big on turning its distribution advantage into a dominant force in practical AI agents.
The acquisition caps a year of bold moves for Meta, including its large investment in Scale AI and the hiring of its founder Alexandr Wang to lead AI efforts. As the industry shifts from foundational models to real-world applications in 2026, this $2 billion+ deal could prove to be a defining moment — proving that in the AI arms race, talent, proven products, and speed matter more than ever.
Stay tuned: the real test will be how quickly Meta weaves Manus’s autonomous magic into the daily lives of billions of users. The future of AI just got a lot more hands-on. 🚀
