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Business acquisition

Meta Platforms Acquires Manus AI

Analysis based on 29 articles · First reported Dec 29, 2025 · Last updated Dec 30, 2025

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Articles
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The acquisition of Manus by Meta Platforms is expected to accelerate AI innovation for businesses and integrate advanced automation into Meta Platforms' consumer and enterprise products, potentially providing a more immediate revenue stream. This deal also highlights the ongoing competition in the AI industry and raises questions about US investment in AI startups with Chinese roots, as seen with criticism directed at Benchmark.

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Meta Platforms has acquired Manus, a Singapore-based developer of general-purpose artificial intelligence agents, for an estimated $2 billion to $3 billion. Manus, originally founded in China as part of Beijing Butterfly Effect Technology, relocated its headquarters to Singapore to pursue global expansion and mitigate risks from U.S.-China tensions. The startup, backed by investors like Benchmark, Tencent, and HongShan, achieved over $100 million in annualized average revenue within eight months of launch. Meta Platforms plans to integrate Manus's technology into its consumer and business products, including Meta AI, while Manus will continue its existing subscription service. This acquisition aligns with Mark Zuckerberg's strategy to prioritize AI and follows other high-profile AI moves by Meta Platforms, such as investments in Scale AI and the acquisition of Limitless. The deal has also sparked debate regarding US investment in AI startups with Chinese roots, leading Manus to cease its operations and services in China and cut all Chinese ownership interests.

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Xiao Hong, co-founder and CEO of Manus, stated that joining Meta Platforms allows Manus to build on a stronger foundation without changing its operations.
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Benchmark led a Series B funding round for Manus, investing $75 million at a valuation of around $500 million. Benchmark faced criticism from US lawmakers over its backing of Manus due to its Chinese roots.
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HongShan, formerly Sequoia China, is an investor in Manus.
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Alexandr Wang, founder of Scale AI, joined Meta Platforms' leadership team as chief AI officer after Meta Platforms' investment in Scale AI.
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Meta Platforms invested $14.3 billion in Scale AI, bringing its founder Alexandr Wang onto Meta Platforms' leadership team as chief AI officer.
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Manus was originally founded in China as part of the startup Beijing Butterfly Effect Technology, also known as Monica.Im.
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Meta Platforms acquired Limitless, an AI wearables startup, as part of its broader expansion into AI-enabled devices.
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ServiceNow is promoting autonomous agents as a practical business application of AI, similar to Manus's offerings.
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Xiao Hong related Manus
Alexandr Wang founder Scale AI Alexandr Wang co-founded Scale AI in 2016 and served as its CEO until June 2025. He remains on the board of directors an
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