Meta Bolsters AI Ambitions with Multi-Billion Dollar Acquisition of Startup Manus
Manus was originally founded with Chinese roots, backed by the Beijing-based Butterfly Effect Technology, and funded by major Chinese investors.
RMN Digital Corporate Desk
New Delhi | January 2, 2026
Meta has officially announced the acquisition of Manus, a high-profile Artificial Intelligence startup specializing in autonomous “AI agents”. While the Facebook-parent company did not publicly disclose the financial terms, sources familiar with the transaction report that the deal values the Singapore-based startup between $2 billion and $3 billion.
The move is seen as a major step in CEO Mark Zuckerberg’s strategy to prioritize AI development through aggressive hiring and infrastructure investment. Manus rose to prominence in 2025 after its general AI agent went viral for its ability to autonomously execute tasks and make decisions with significantly less prompting than competitors like ChatGPT. At the time, the startup was generating an annual revenue run rate of $125 million from business subscriptions.
Navigating Geopolitical Tensions
The acquisition comes amid “fierce technological rivalry” between the United States and China. Manus was originally founded with Chinese roots, backed by the Beijing-based Butterfly Effect Technology, and funded by major Chinese investors including Tencent Holdings and ZhenFund. To navigate US-China tensions, the company relocated its headquarters to Singapore shortly before the deal.
In a move to preempt regulatory hurdles in Washington, Meta issued a specific clarification regarding the startup’s future. A company spokesperson confirmed that there will be no continuing Chinese ownership interests in Manus AI post-acquisition, and the startup will completely discontinue its operations and services within China.
The “ScaleAI” Connection
Meta’s Chief AI Officer, Alexandr Wang—who joined the company in 2025 following a high-profile investment in his own startup, ScaleAI—welcomed the Manus team of roughly 100 employees. Wang praised the Singapore-based team for being “world class” at developing powerful agents.
Manus CEO Xiao Hong expressed optimism about the merger, stating that the partnership allows the startup to build its technology at a “scale we never could have imagined”. He emphasized that the industry is entering an era where AI “doesn’t just talk, but acts, creates, and delivers”.
Integrating Manus into Meta is like a master architect hiring a specialized team of robotic builders. While previous AI could only read the blueprints and explain how to build a house (talking), this new team can actually pick up the tools and lay the bricks themselves (acting) to complete the structure.
