What is Manus, the Chinese-founded AI startup Meta is buying for over $2 billion?

Meta has made headlines with its acquisition of Manus, a groundbreaking artificial intelligence startup founded in China, in a deal valued at more than $2 billion. This acquisition marks a significant moment as it is one of the most prominent instances of a major US tech company acquiring an Asian AI firm. Manus first drew attention in March when it launched an AI agent capable of autonomously handling various tasks, including résumé screening and stock analysis. Founded by the Chinese AI product studio Butterfly Effect, Manus relocated its headquarters to Singapore in mid-2025. The creators tout Manus as the world's first "general" AI agent, intended for independent task execution. Since its inception, Manus has broadened its capabilities, enabling users to utilize the platform for design tasks, slide creation, and various online actions through a web browser. According to Meta's announcement regarding the acquisition, Manus can perform complex tasks like market research, coding, and data analysis. Early testing by Business Insider suggested that while Manus shows promise, it has experienced inconsistencies, such as generating inaccurate data. The startup recently announced that it surpassed $100 million in annual recurring revenue, with its total revenue run rate exceeding $125 million. Manus secured $75 million in funding in April, led by Benchmark, which valued the company at around $500 million. Currently, Manus employs approximately 105 individuals across locations in Singapore, Tokyo, and San Francisco, with plans to open an office in Paris soon. Manus was co-founded by Xiao Hong, known in tech circles as "Red," who is also the CEO of Butterfly Effect. Born in 1992, Xiao studied software engineering and previously founded Nightingale Technology, where he developed popular enterprise productivity tools. Following the acquisition, Xiao will transition to a vice president role at Meta. Joining Xiao is co-founder Ji Yichao, or "Peak Ji," who served as chief scientist at Butterfly Effect and spearheads technical development at Manus. Ji, recognized for his contributions to consumer technology, was named to MIT Technology Review's Innovators Under 35 list this year. The founding team also includes Zhang Tao, who has held significant product roles at ByteDance and Tencent. Meta has expressed that this acquisition aligns with its strategy to enhance general-purpose AI agents within its ecosystem. The company confirmed that Manus will continue to operate as a standalone entity while integrating its technology into Meta's broader AI initiatives. Manus assured its customers that there would be no disruptions to its services and that operations would remain based in Singapore. However, Manus's connections to China have raised concerns. In May, Senator John Cornyn questioned the implications of US investments in Chinese-linked AI companies amid rising competition with Beijing. In response to these concerns, a Meta spokesperson confirmed that the acquisition will eliminate any remaining ownership ties to China, with Manus discontinuing its services and operations there, including the shutdown of its AI assistant, Monica. Furthermore, employees joining Meta will not have access to customer data, and precautions will be taken to geo-block access to Meta's AI models.