Meta Buys Singapore-Based AI Startup Manus as AI Push Accelerates

The acquisition highlights Meta’s shift toward revenue-generating AI and signals growing US interest in Asia-built AI startups

Meta Platforms has agreed to acquire Manus, a Singapore-based artificial intelligence startup specialising in general-purpose AI agents, in a deal valued at more than $2 billion, according to people familiar with the matter. The acquisition caps a year of aggressive AI investment by Meta and stands out as one of the largest US takeovers of an Asia-built AI company.

Manus was originally established in China and later moved its base to Singapore. It builds general-purpose AI agents that can handle multi-step work such as research, software development, data processing and website generation for paying customers. Sources said the company was preparing to raise new capital at a $2 billion valuation when Meta entered acquisition talks. Meta did not disclose deal terms.

Why Manus mattered to Meta

Manus attracted global attention earlier this year after releasing a demo showing its AI agent completing multi-step tasks typically handled by knowledge workers. The product gained traction quickly, positioning Manus as a potential alternative to research tools from firms such as OpenAI.

Crucially, Manus is already generating revenue at scale. The company said it crossed $100 million in annual recurring revenue just eight months after launch, with revenue run rates exceeding $125 million. That commercial traction sets Manus apart at a time when investors are increasingly scrutinising AI companies for monetisation, not just technical capability.

For Meta, which has spent tens of billions of dollars building AI infrastructure, Manus represents a rare combination: an AI agent product that is already in market, growing fast, and making money.

Leadership and operating structure

Manus co-founder and chief executive Xiao Hong, known internally as “Red,” will report to Javier Olivan, according to people familiar with the deal. Meta said Manus employees will join its teams, while the startup will continue operating its subscription business independently from Singapore.

“Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” Xiao said in a company statement. “We will continue to iterate the product and serve the users who have defined Manus from the beginning.”

Meta said Manus would continue selling subscriptions through its own app and website, easing concerns about immediate product disruption.

Asia-built AI, US capital — and political scrutiny

The deal is one of the most high-profile examples of a US technology company acquiring an AI product built within Asia’s startup ecosystem. Manus began as part of Chinese startup Butterfly Effect, also known as Monica.Im, before becoming an independent entity and moving its headquarters to Singapore in mid-2025.

The company’s origins have drawn attention from US policymakers. Meta said the transaction would leave Manus without any ongoing Chinese ownership and confirmed that the platform would shut down its services and operations in China.

“There will be no continuing Chinese ownership interests in Manus AI following the transaction,” a Meta spokesperson said, adding that Manus would remain based in Singapore.

Funding history and rapid scale

Manus raised $75 million in a Series B round led by Benchmark in April, with backing from Tencent, ZhenFund and HongShan Capital Group (formerly Sequoia China), according to Tracxn. Benchmark partner Chetan Puttagunta joined the board as part of the round.

The company has reported processing more than 147 trillion tokens and supporting over 80 million virtual computers, highlighting the scale at which its agent-based systems are already operating. Its tools rely on large language models from providers including Anthropic and Alibaba.

How the deal fits Meta’s broader AI strategy

Meta said the acquisition will help accelerate AI innovation for both businesses and consumers, with Manus’s agent technology expected to be integrated into products such as Meta AI across Facebook, Instagram and WhatsApp.

“Manus is already serving the daily needs of millions of users and businesses worldwide,” Meta said in a statement. “We plan to scale this service to many more businesses.”

The deal follows Meta’s $14.3 billion investment in Scale AI earlier this year, which brought founder Alexandr Wang into Meta’s AI leadership, as well as smaller acquisitions focused on AI wearables and automation tools. Together, the moves signal a shift from foundational models toward applied, agent-driven AI products.

Conclusion

Meta’s acquisition of Manus underscores a broader transition in the AI market: from experimental models to revenue-generating agents capable of automating real work. It also highlights Asia’s growing role in producing commercially viable AI startups, even as geopolitical concerns shape how those companies globalise.

For founders and investors, the deal sends a clear signal. In an increasingly crowded AI landscape, startups that can demonstrate real usage, paying customers and scalable execution may command premium valuations—and attract strategic buyers far sooner than expected.

Quick Takeaways

• Deal highlights Meta’s AI push: Meta Platforms is acquiring Manus in a deal valued at more than $2 billion, marking one of its largest AI acquisitions to date.
• Rare Asia-built AI takeover: The transaction stands out as an uncommon US acquisition of an AI startup developed within Asia’s tech ecosystem.
• Revenue-driven appeal: Manus crossed $100 million in annual recurring revenue within eight months of launch, setting it apart in a sector still struggling with monetisation.
• Political sensitivities addressed: Meta said the deal will eliminate any remaining Chinese ownership interests and that Manus will cease operations in China.
• Leadership and continuity: Manus CEO Xiao Hong will report to Meta COO Javier Olivan, while the product will continue operating as a subscription service.
• Strategic fit: The acquisition aligns with Meta CEO Mark Zuckerberg’s broader strategy to integrate general-purpose AI agents across consumer and enterprise products.