Facebook parent company to cement position in market for AI agents
Trade
Meta Platforms is acquiring Manus, a Singapore-based AI start-up with roots in China, for more than $2 billion dollars (€1.7 billion). The deal is one of the first acquisitions of a Chinese start-up by a major American technology company. Manus, co-founded by Xiao Hong (Red), specialises in deep search and executing tasks for paying users.
The deal illustrates the growing trend of American tech giants investing in AI products developed in Asia. Manus gained popularity after launching an AI agent that could produce detailed research reports and build personalised websites using templates from, for example, Anthropic and Alibaba. This followed the introduction of DeepSeek, an AI model developed in China that impressed Silicon Valley with its advanced capabilities.
Meta’s acquisition of Manus reflects its aggressive push for AI dominance as it seeks to compete with Google, Microsoft and OpenAI. The company wants to cement its position in the nascent market for AI agents.
Meta plans to continue operating and selling the Manus service while integrating it into its existing suite of social media products. The company has previously advocated for open-source models, which are freely available for adaptation and distribution. Meta wants to expand the Manus service to more businesses.
The acquisition follows earlier challenges Meta faced when rolling out a new AI model. In response, CEO Mark Zuckerberg launched a recruitment drive, bringing in top executives and researchers with multimillion-dollar pay packages.
Since its launch in the spring, Manus has amassed millions of users, including people paying for subscriptions for analytics, coding and other tasks. In April, Manus raised $75 million (€63.7 million) in a funding round led by Benchmark, valuing the company at $500 million (€424.7 million). Other major investors include HSG, ZhenFund and Tencent.
In December, Manus surpassed $100 million (€84.9 million euros) in annual recurring revenue, just eight months after launch. Meta then started acquisition talks. Xiao stressed that joining Meta would give Manus a stronger footing without changing its operations or decision-making processes.
Manus’ parent company, Butterfly Effect, was founded in 2022 and has offices in Beijing and Wuhan. Although most researchers and engineers are based in China, Manus was launched outside the country because of its reliance on American AI models that are not available there. After Benchmark’s investment, Manus officially moved its headquarters to Singapore.
Benchmark has come under fire from US lawmakers for backing an AI company with ties to China. Manus has also shelved plans for a version for the Chinese market. With around 100 employees, mainly based in Singapore, Manus is poised to become a key asset in Meta’s growing AI portfolio.
Business AM