Meta Set to Acquire AI Startup Manus Amid Acceleration of Integration Efforts
This week, Meta announced its intention to acquire Manus, a pioneering artificial intelligence startup with roots in China. This strategic move reflects the technology titan’s commitment to embedding advanced AI capabilities across its diverse platforms.
Although the financial specifics of the transaction remain undisclosed, a knowledgeable source indicated that the valuation of the Singapore-based firm is estimated to fall between $2 billion and $3 billion.
Manus gained significant attention early this year on X, following the launch of what it touted as the world’s inaugural general AI agent.
This innovative technology demonstrated the capability to make autonomous decisions and execute tasks with remarkably less prompting than existing AI chatbots like ChatGPT and DeepSeek.
This breakthrough sparked discussions, with many comparing it to China’s next DeepSeek, earning accolades on Chinese state television.
Subsequently, the company relocated its headquarters from China to Singapore, joining a growing number of Chinese enterprises that have made similar moves to mitigate risks arising from escalating US-China tensions.
“Increased scrutiny is virtually assured; any entity associated with Chinese origins and labeled as ‘AI’ immediately raises alarms in Washington,” noted Jeremy Goldman, senior director at Emarketer.
Manus, which does not market its products in China, asserts that the performance of its AI agent eclipses that of OpenAI’s DeepResearch. The company has also forged a strategic partnership with Alibaba to advance collaborative AI model development.
The acquisition will allow Meta to operate and sell the Manus service, incorporating it into its consumer and business offerings, including its Meta AI platform.
“The integration aligns seamlessly with Meta’s rapidly expanding footprint in the small and medium business sector on WhatsApp, reflecting CEO Mark Zuckerberg’s vision for a more agent-driven personal AI experience,” commented Barton Crockett, an analyst at Rosenblatt Securities.
In the wake of formidable industry competition, tech giants like Meta are significantly increasing their investments in AI through strategic acquisitions and talent recruitment.
Earlier this year, Meta invested in Scale AI, a deal that valued the data-labeling startup at $29 billion, and also welcomed its 28-year-old CEO, Alexandr Wang, into the fold.
Manus, supported by its parent company, Beijing Butterfly Effect Technology, successfully raised $75 million in funding this year, achieving a valuation near $500 million, a confirmation of earlier media reports. The funding round was notably led by US venture firm Benchmark.
Notable investors also include HSG, formerly recognized as Sequoia Capital China, ZhenFund, and the internet conglomerate Tencent Holdings, according to PitchBook data.
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