Meta Buys AI Startup Manus for $2.5B
Meta has acquired Manus, an AI startup backed by Benchmark, for a reported $2.5 billion. The deal comes after Manus achieved a stunning growth trajectory, hitting $100 million in annual recurring revenue in just eight months by using advanced AI for task-breaking. This marks another major talent and tech acquisition in the AI arms race.
Manus is not a chatbot but a general-purpose autonomous AI agent, designed to execute complex, multi-step tasks with minimal human supervision. Its system can independently perform functions like screening resumes, analyzing stocks, creating trip itineraries, and generating financial reports. The startup was founded by Chinese entrepreneur Xiao Hong through his AI product studio Butterfly Effect (which also operates as Monica.im) before the parent company relocated to Singapore. The founding team includes CEO Xiao Hong, Chief Scientist Yichao “Peak” Ji, and Head of Product Zhang Tao, a former product manager at Tencent and ByteDance. Prior to the acquisition, Manus's parent company was valued at approximately $500 million after a $75 million funding round led by Benchmark. Early financial backers also included major Chinese firms Tencent Holdings, ZhenFund, and HSG. The deal, which came together in about 10 days, is a rare instance of a major U.S. tech firm acquiring an Asian AI company. As part of the transaction, Meta confirmed that Manus will discontinue its operations in China and there will be no continuing Chinese ownership interests. Meta plans to continue operating the Manus subscription service while also integrating its AI agent technology across its own platforms. The company has already begun rolling out Manus AI tools directly within its Ads Manager to help advertisers with campaigns. The acquisition is part of a broader "acqui-hiring" trend in the technology industry, where companies purchase startups primarily to secure their engineering and research talent. In the first half of 2025, there were 365 M&A deals in the AI sector, totaling over $10 billion in value as companies race to accelerate their AI development.
