Meta Acquires Manus AI for Over $2 Billion in Major Deal

UPDATE: Meta has officially acquired Manus, a Chinese-founded AI startup, for over $2 billion, marking one of the most significant AI purchases in 2025. The acquisition was confirmed earlier today, as Meta aims to enhance its general-purpose AI capabilities across its platforms.

Manus, established by the Chinese company Butterfly Effect, skyrocketed to prominence after launching an innovative “general” AI agent capable of performing a variety of tasks independently. Following its launch in March 2025, the startup gained attention for its ability to execute complex activities such as market research, coding, and data analysis. This acquisition comes as Meta seeks to bolster its position in the competitive AI landscape.

The company’s annual recurring revenue has soared past $100 million, with total revenue exceeding $125 million. Since its inception, Manus has expanded its offerings to include design work, slide creation, and web-based task execution. This rapid growth underscores the startup’s potential and the strategic value it presents to Meta.

Manus’s founders, including CEO Xiao Hong and chief scientist Ji Yichao, will play pivotal roles post-acquisition. Xiao, known as “Red” in tech circles, has an impressive background, having previously founded successful tech ventures. With this acquisition, he will transition to a vice president role at Meta, ensuring Manus retains its operational independence while integrating its cutting-edge technology into Meta’s broader AI ecosystem.

The acquisition also raises questions about Manus’s ties to China, especially amid increasing scrutiny surrounding US investments in Asian tech firms. In response, a Meta spokesperson confirmed that the deal will completely sever Manus’s remaining links to China, with a commitment to discontinuing operations and services in the country. This strategic move comes at a time when US tech firms are under pressure to navigate geopolitical tensions with Beijing.

“Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” Xiao stated, emphasizing the startup’s commitment to its existing customers and operations in Singapore.

This acquisition is not just a financial transaction; it positions Meta to gain a significant advantage in the AI market, potentially boosting its revenue and expanding its distribution capabilities. As the tech giant integrates Manus’s innovative technology, industry experts are watching closely to see how this will reshape the competitive landscape.

As this story develops, key implications for AI technology and international business relationships will emerge, making it a critical moment in the tech industry. Stay tuned for more updates on this groundbreaking acquisition.