Meta acquires AI startup Manus in milestone deal worth over $2 billion

On December 29, 2025, Meta made headlines with its announcement of acquiring Manus, an innovative artificial intelligence startup originally founded in China and based in Singapore. This strategic move aims to enhance the deployment of advanced autonomous AI agents across Meta's popular platforms, including Instagram, WhatsApp, and Facebook. While the exact financial details of the transaction remain under wraps, sources such as the Wall Street Journal and Reuters have estimated the deal's worth to be between $2 billion and $3 billion. This acquisition marks Meta's third-largest, following its earlier purchases of WhatsApp and Scale AI. Founded in 2022 by Xiao Hong under the umbrella of Beijing Butterfly Effect Technology, Manus captured global attention earlier this year with the launch of what it touted as the world's first "general-purpose" AI agent. Unlike conventional chatbots that deliver text-based responses, Manus's technology is designed to autonomously carry out complex, multi-step tasks. Its capabilities encompass market research, data analysis, full-stack coding, and workflow automation, all with minimal user input. In June 2025, Manus relocated its headquarters to Singapore to mitigate risks posed by geopolitical tensions between the US and China. Following the acquisition, Manus will cut ties with its Chinese investors and discontinue operations within China, resulting in job losses for its staff based there. The remaining team members are set to join Meta, although Manus will maintain its independent subscription service from Singapore. Meta plans to incorporate Manus's cutting-edge technology into its consumer and business products, particularly enhancing the functionality of Meta AI. This acquisition comes during a period of aggressive AI investment for Meta, which has dedicated substantial resources towards hardware and talent to remain competitive against industry leaders like OpenAI and Google. However, the deal may attract scrutiny from regulators in both Washington and Beijing, with US lawmakers previously voicing concerns about American venture capital investments in the startup, while Chinese analysts worry about the brain drain of domestic AI talent to US tech giants.