Tech giant Meta is acquiring the Singapore-based AI startup Manus in a deal reportedly valued at $2 billion. Manus gained global attention this spring with a viral demo of its AI agent. The agent can perform tasks like screening job candidates, planning vacations, and analyzing stocks.
Founded just months ago, the AI startup quickly attracted investors. Benchmark and other venture firms backed Manus, driving its valuation to $500 million by April. Despite early skepticism about pricing ($39 to $199 per month), Manus proved its model. It recently announced millions of users and over $100 million in annual recurring revenue.
Meta CEO Mark Zuckerberg sees Manus as a profitable addition to the company’s AI portfolio. The AI startup will operate independently while its technology integrates into Facebook, Instagram, and WhatsApp. This move aligns with Meta’s broader investment in AI infrastructure over the past years.
The acquisition is not without challenges. Manus’ founders originally launched the parent company in Beijing in 2022 before relocating to Singapore. The startup also received early funding from Chinese investors, including Tencent.
These connections raised concerns in Washington. Senator John Cornyn questioned whether American investment might benefit foreign AI competitors. To address scrutiny, Meta confirmed that Manus will have no remaining Chinese ownership. The company will also cease all operations and services in China.
The acquisition reflects the growing value of AI startups globally. Manus’ rapid rise demonstrates how small, innovative firms can quickly become influential in the AI space. Meta’s move highlights the company’s focus on acquiring proven AI technology rather than building from scratch.
Analysts note that Manus’ profitable model and advanced AI agent make it a rare example of a startup achieving both growth and revenue so quickly. The deal is expected to accelerate Meta’s AI capabilities and reinforce its position in social media and digital services.
With regulatory concerns addressed, Meta aims to leverage Manus’ technology to enhance user experiences and AI offerings worldwide. The acquisition marks a major milestone for both the AI startup and Meta’s growing AI strategy.
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