Meta Platforms has moved to strengthen its artificial intelligence ambitions with the acquisition of Manus, a rapidly growing AI startup based in Singapore, in a deal valued at approximately $2 billion.

Founded by former Beijing-based entrepreneurs, Manus gained global attention earlier this year after releasing a demonstration video that showcased its AI agents performing complex tasks such as screening job applicants, organizing travel plans, and evaluating investment portfolios. The company claimed its technology outperformed OpenAI’s Deep Research, quickly placing it at the center of discussions across Silicon Valley.

Only weeks after its public debut, Manus secured a major funding round led by venture capital firm Benchmark, which raised $75 million and placed the startup’s valuation at $500 million. The investment brought Benchmark partner Chetan Puttagunta onto Manus’ board. Reports from Chinese media also indicated early backing from prominent investors, including Tencent, ZhenFund, and HSG, through an earlier $10 million financing round.

By mid-December, Manus announced it had attracted millions of users worldwide and was generating more than $100 million in annual recurring revenue, largely through paid monthly and yearly subscriptions. These financial milestones reportedly triggered acquisition talks with Meta, which intensified as the startup prepared for its next funding round.

For Meta Chief Executive Officer Mark Zuckerberg, the purchase represents a strategic win at a time when investors are closely scrutinizing the company’s heavy spending on AI infrastructure. Manus stands out as one of the few AI startups already generating significant revenue, a factor that adds weight to Meta’s long-term bet on artificial intelligence.

Meta stated that Manus will continue to operate independently while its AI agent technology will be integrated into Meta’s ecosystem, including Facebook, Instagram, and WhatsApp, where Meta AI is already deployed.

However, the acquisition is not without political sensitivity. Manus’ founders originally established its parent company, Butterfly Effect, in Beijing in 2022 before relocating operations to Singapore earlier this year. This background has drawn attention from U.S. lawmakers, particularly Senator John Cornyn, who has previously raised concerns about American capital flowing into companies with Chinese roots.

In response, Meta has emphasized that the transaction will fully sever Manus’ ties to China. According to the company, there will be no remaining Chinese ownership following the acquisition, and Manus will discontinue all services and operations within China.

As regulatory scrutiny around technology and national security continues to intensify, Meta’s acquisition of Manus is likely to remain under close observation in Washington and beyond.

Source: Techcrunch