Meta Acquires Manus in $2 Billion AI Deal to Accelerate Agent Strategy

Meta Platforms has agreed to buy Manus, a Singapore-based artificial intelligence startup, as it steps up efforts to build a commercial business around AI agents. The deal values Manus at more than $2 billion, according to people familiar with the matter, and was completed in roughly 10 days, highlighting Meta’s urgency in the AI race.

Manus, operated by parent company Butterfly Effect Pte, was founded in China before relocating to Singapore. The startup gained prominence earlier this year as interest surged in autonomous AI agents following the debut of DeepSeek. Backed by investors including Tencent Holdings, ZhenFund, and HSG, Manus generated an annual revenue run rate of $125 million by selling its AI agent to businesses through subscriptions.

Meta said it plans to continue operating and selling the Manus service while integrating the technology into its own products. All existing investors have been bought out, and Meta confirmed there will be no continuing Chinese ownership interests after the transaction. Manus will also cease operations in China, a move that may help reduce regulatory and political scrutiny as the U.S. and China compete for leadership in artificial intelligence.

The Manus agent is designed to complete tasks with minimal human supervision, including screening resumes, building travel itineraries, and analyzing stocks. Such “AI agents” are increasingly seen as the next step beyond chatbots, with enterprise software providers like Salesforce and ServiceNow heavily promoting similar tools for business use.

For Meta, the acquisition fills a strategic gap. Analysts note that while Meta has strong foundation models, it has lagged rivals such as OpenAI, Google, and Anthropic in building a broad ecosystem of AI applications. The Manus deal is expected to strengthen Meta’s ability to offer subscription- and API-based AI services.

Leadership integration is already underway. Manus co-founder and CEO Xiao Hong is expected to report to Meta COO Javier Olivan, according to the Wall Street Journal. Meta’s Chief AI Officer Alexandr Wang welcomed the roughly 100-person Manus team, while Xiao said the deal would allow the company to scale its vision of AI that “acts, creates, and delivers.”

The acquisition comes amid Meta’s aggressive AI spending. CEO Mark Zuckerberg has committed to heavy investment in data centers, talent, and new models, with plans to debut a next-generation system next year. While some investors remain skeptical about near-term returns, the Manus purchase signals Meta’s intent to turn infrastructure spending into practical, revenue-producing AI products at scale.