Meta just made one of its biggest moves in the AI race. The company has agreed to buy Manus AI, a fast-growing startup that has changed how people think about AI tools. The price tag alone is enough to turn heads across the tech world.
Manus is not your typical AI company. It does something different from chatbots like ChatGPT, and that difference caught the attention of millions of users within months of launch. The startup's growth story is one of the most surprising in recent years.
This deal reveals a lot about Meta's plans for the future. It also tells us where the AI industry is heading and why big tech companies are in a rush to secure the best talent and tools. There are some interesting details about the company's origins and why it had to make some tough choices along the way.
Let's get into it.
Executive Summary
Meta has agreed to acquire Manus AI, a Singapore-based AI agent startup, for between $2 billion and $3 billion. This is one of the largest AI acquisitions of 2025.
- Manus builds AI agents that perform tasks like research, coding, and data analysis without constant human input
- The company was valued at $500 million in April 2025 and reached $100 million in yearly revenue within 8 months of launch
- Manus has processed over 147 trillion tokens and created 80 million virtual computers since launch
- CEO Xiao Hong and roughly 100 employees will join Meta, with Xiao reporting to COO Javier Olivan
- Parent company Butterfly Effect was founded in China in 2022 but moved headquarters to Singapore in 2025 due to US-China tensions
- Manus will continue operating as a standalone service while being integrated into Meta AI, Instagram, and WhatsApp
- This follows Meta's earlier 2025 investment in Scale AI at a $29 billion valuation, with Scale CEO Alexandr Wang becoming Meta's Chief AI Officer
What is Manus AI
Manus is an AI startup that builds AI agents. The company is based in Singapore and was started by Chinese founders. Unlike regular chatbots that only answer your questions, Manus creates AI that can actually do work for you. The AI can handle tasks on its own without needing constant direction from users.
The company launched its first AI agent in early 2025. The launch quickly caught the attention of millions of people around the world. Many in the tech world compared it to DeepSeek, another AI tool that surprised everyone with its abilities.
What Manus AI can do:
- Complete market research and gather data from different sources
- Write and review code for software projects
- Analyze large amounts of information and create reports
- Build custom websites based on user needs
- Work through complex tasks step by step without much human input
Since its launch, Manus has grown fast. Millions of users now rely on the service for their daily work. The AI has processed over 147 trillion tokens and created more than 80 million virtual computers. These numbers show just how much people have come to depend on AI agents for getting things done.
How Much Did Meta Pay
Meta is paying between $2 billion and $3 billion to buy Manus. This price tag makes it one of the biggest AI deals of the year. The exact amount has not been shared publicly, but sources close to the deal have confirmed this range.
The growth in value has been remarkable. Just a few months ago, Manus was worth far less. The company raised $75 million in April 2025, and at that time, investors valued it at $500 million. This means the company's worth jumped by four to six times in less than a year.
Key numbers behind the deal:
- Manus hit $100 million in yearly revenue just 8 months after launch
- The company went from $500 million to over $2 billion in value within months
- Venture firm Benchmark led the April funding round
This rapid growth shows how quickly AI companies can increase in value when their products gain wide use.
Why Meta Bought Manus
Meta made this purchase for three main reasons. Each reason ties into the company's larger plan to lead the AI race against other tech giants.
For AI Agent Tech
AI agents are becoming the most sought-after tools in tech right now. These agents can finish tasks on their own without needing someone to guide them at every step. Meta wants to stay ahead of competitors like Microsoft, which already offers its Copilot AI assistant. By buying Manus, Meta gets access to one of the best AI agent systems available today.
For Business Growth
Manus brings millions of paying users to Meta. These users already trust the service for research, coding, and data analysis. Meta sees a strong fit between Manus and its WhatsApp platform. Small and medium businesses that use WhatsApp could soon get AI tools to help them work faster.
- Manus users can complete complex work in less time
- WhatsApp business accounts could gain new AI features
- Meta can offer more value to business customers
For Talent
The deal also brings skilled people to Meta. Manus has around 100 AI researchers and engineers on its team. The company's CEO, Xiao Hong, will join Meta and report directly to COO Javier Olivan. Meta has been actively hiring top AI talent throughout the year, and this deal adds an entire team of experts at once.
What Will Change for Users
Meta has stated that the Manus service will continue to run as it does today. Current users can expect the same features and tools they already use. The company has no plans to shut down or drastically change how Manus works.
Over time, Meta will add Manus features to its own products. Users of Meta AI, Instagram, and WhatsApp may notice new AI tools in these apps. The goal is to bring AI agent abilities to billions of people who already use Meta's platforms every day.
What users can expect:
- Manus will keep working as a standalone service
- Meta AI will gain new features powered by Manus tech
- Instagram and WhatsApp may get smarter AI tools
- Small business owners on WhatsApp could access AI agents for daily tasks
For regular users, the changes will likely appear slowly over the coming months. Meta wants to blend Manus into its apps in a way that feels smooth and useful. The aim is to make AI tools more helpful for both personal use and business needs across all Meta platforms.
The Story Behind Manus
Manus did not start as an independent company. Its parent company, Butterfly Effect, was founded in 2022 with offices in Beijing and Wuhan. The team began working on Manus in October 2024. Within months, they built an AI agent that could perform tasks on its own.
The company chose to launch Manus outside China. This decision came because Manus relies on American AI models that are not available inside China. The product first reached users in other markets, and China was never part of the launch plan.
The Viral Moment
In March 2025, Manus released a demo showing what its AI agent could do. The video spread quickly across social media and tech forums. Many people compared it to DeepSeek, a Chinese AI model that had surprised Silicon Valley with its advanced abilities and low development costs. Chinese state media covered the news, and tech watchers around the world took notice.
Funding and Growth
- Benchmark led a $75 million funding round in April 2025
- Other investors include Sequoia Capital China, ZhenFund, and Tencent
- The company hit $100 million in yearly revenue by December 2025
- Manus has processed over 147 trillion tokens since launch
- The platform has created more than 80 million virtual computers for users
This growth happened in just eight months, making Manus one of the fastest-growing AI startups in recent years.
The China Connection
Manus has roots in China, but the company has worked hard to distance itself from those ties. Chinese entrepreneurs founded the company, and its first offices were in Beijing and Wuhan. Most of the researchers and engineers who built Manus were based in China during the early stages.
In 2025, the company moved its headquarters to Singapore. This shift was a direct response to growing tensions between the United States and China. Many other Chinese tech companies have made the same move to reduce risks tied to this political situation.
Key facts about the China connection:
- US lawmakers have raised concerns about investments in AI companies with Chinese origins
- Venture firm Benchmark faced criticism for backing Manus due to these ties
- Manus products are not available to users inside China
- The company has cancelled all plans to launch a Chinese version
The move to Singapore helped Manus secure funding and partnerships with American firms. By keeping its operations outside China and avoiding the Chinese market entirely, the company has tried to ease concerns from US regulators and investors. This strategy appears to have worked, given Meta's willingness to complete this deal.
Meta's Bigger AI Plans
The Manus deal is just one part of Meta's larger push into AI. The company has been spending heavily to catch up with competitors like Google, Microsoft, and OpenAI. Mark Zuckerberg has made AI the top priority for Meta's future.
Earlier in 2025, Meta bought a 49% stake in Scale AI. That deal valued Scale AI at $29 billion. As part of the agreement, Scale AI's 28-year-old CEO Alexandr Wang joined Meta as its Chief AI Officer. This brought both tech and leadership talent under one roof.
How Meta is building its AI advantage:
- Zuckerberg has offered large pay packages to attract top AI researchers
- The company already provides free AI tools in Instagram and WhatsApp
- AI tech has improved Meta's advertising business and increased revenue
- Meta continues to develop open source AI models that anyone can use
Meta faces strong competition in the AI space. Microsoft has Copilot, Google has Gemini, and OpenAI leads with ChatGPT. By buying companies like Manus and Scale AI, Meta is trying to close the gap and offer AI tools that can match or beat its rivals.
What This Means for the AI Industry
This deal sends a clear message to the tech world. AI agent tech has become extremely valuable, and big companies are ready to pay billions to get it. The race to build the best AI tools is moving faster than ever.
The competition for AI talent and tech continues to grow. Companies are looking everywhere for skilled teams, regardless of where they come from. The Manus deal shows that US firms will still work with talent from other countries if the tech is strong enough.
Key takeaways for the industry:
- AI startups with working products can reach billion-dollar values quickly
- Singapore is rising as a major hub for AI companies
- Big tech firms prefer buying proven AI teams over building from scratch
- More large AI acquisitions are likely to happen in 2026
The Manus deal will probably inspire other AI startups to aim higher and move faster.
