Asger Risom
A little-known startup that shot to prominence almost overnight is about to become part of one of Silicon Valley’s most powerful companies.
A little-known startup that shot to prominence almost overnight is about to become part of one of Silicon Valley’s most powerful companies. The move highlights how aggressively Meta is pursuing artificial intelligence that can act independently — and generate real money.
According to reporting by The Wall Street Journal, Meta Platforms is acquiring Manus, a fast-growing AI startup based in Singapore, for roughly $2 billion, matching the valuation the company had been seeking in a planned funding round. The deal ranks among the most significant AI acquisitions of 2025.
A sudden rise
Manus first appeared in spring 2025 and quickly became a talking point across the tech industry. The company unveiled an AI agent capable of carrying out complex, multi-step tasks with little human oversight, including screening job candidates, planning detailed travel itineraries, analysing investment portfolios, and conducting extended research.
Public demos — and bold claims that its system outperformed OpenAI’s Deep Research — helped Manus stand out in a crowded field, drawing interest from investors and major technology firms alike.
Revenue, not just hype
By April 2025, Benchmark led a $75 million funding round that valued Manus at $500 million, alongside backers including Tencent, ZhenFund and HSG, formerly known as Sequoia China. More striking than the funding, however, was the business traction.
Manus said it attracted millions of users within months and built a subscription model generating more than $100 million in annual recurring revenue — a rarity in a sector often criticised for burning cash without clear returns.
That combination of capability and income is widely seen as what pulled Meta into acquisition talks.
Why Meta wanted it
For Mark Zuckerberg, Manus offers proof that AI agents can be more than experimental tools. Meta has poured tens of billions of dollars into AI infrastructure, and investors have grown increasingly anxious about the scale of that spending.
Buying a startup with a working product and established revenue allows Meta to argue that AI can already function as a viable business, not just a long-term bet.
Political sensitivities
The acquisition is not without controversy. Manus originated from Butterfly Effect, a company founded in Beijing in 2022 by Chinese founders, before relocating its headquarters to Singapore in mid-2025. That background has drawn scrutiny from US politicians wary of Chinese influence in advanced AI.
In an interview with Nikkei Asia, Meta said that once the deal closes, Manus will have no Chinese shareholders, will cease operations in China, and will cut all formal ties to the country. A Meta spokesperson said there would be “no further Chinese ownership interest” in the company.
Folded into the empire
Meta has said Manus will retain operational independence while its AI agents are integrated into products such as Facebook, Instagram and WhatsApp, where Meta AI is already available.
If the strategy works, Manus could help power a new generation of autonomous digital assistants — and mark another step in Zuckerberg’s expanding AI empire.
Sources: Wall Street Journal; Nikkei Asia; company statements
