Meta Platforms has agreed to acquire Manus, a Singapore-based artificial intelligence startup, in a $2 billion deal after the company drew attention in Silicon Valley for its fast growth, viral product debut, and ability to generate revenue from AI agents, according to reports from the Wall Street Journal.
Viral Launch And Early Claims
Manus emerged publicly this spring after releasing a highly produced demo video that spread quickly across social media and technology circles. The video showed an AI agent capable of tasks such as screening job candidates, planning travel itineraries, and analyzing stock portfolios. At launch, Manus said its system outperformed OpenAI’s Deep Research offering.
The company’s rapid visibility helped it attract investor interest within weeks of its debut.
Funding Rounds And Investor Backing
By April, early-stage venture firm Benchmark led a $75 million funding round that valued Manus at $500 million post-money. Benchmark general partner Chetan Puttagunta joined the company’s board.
Chinese media outlets reported that Manus had already raised an earlier $10 million round before Benchmark’s investment. Backers in that round included Tencent, ZhenFund, and HSG.
Monetization And Revenue Growth
Manus later introduced subscription pricing of $39 or $199 per month for access to its AI models. Bloomberg questioned the pricing strategy at the time, noting that the fees appeared aggressive for a service still described as being in a testing phase.
The company subsequently said it had signed up millions of users and reached more than $100 million in annual recurring revenue. According to the Wall Street Journal, Meta entered acquisition talks with Manus after those revenue figures became clear. The reported $2 billion purchase price matches the valuation Manus was seeking for its next funding round.
Strategic Fit For Meta’s AI Push
For Meta chief executive Mark Zuckerberg, Manus represents an AI business that is already generating significant revenue. Meta has invested heavily in AI infrastructure, spending tens of billions of dollars, a strategy that has drawn scrutiny from investors.
Meta said Manus will continue to operate independently after the acquisition, while its AI agents will be integrated into Facebook, Instagram, and WhatsApp. Meta’s own chatbot, Meta AI, is already available across those platforms.
Founder Background And Political Attention
Manus was founded eight months ago by Chinese founders who previously established parent company Butterfly Effect in Beijing in 2022. The team later relocated operations to Singapore earlier this year.
The founders’ background has attracted political attention in the United States. Senator John Cornyn criticized Benchmark’s investment in Manus earlier this year, questioning on X why American investors would support a company he said could benefit China’s technological competition. Cornyn is a senior member of the Senate Intelligence Committee and has been outspoken on China-related technology issues, a stance that aligns with broader bipartisan concern in Congress.
Meta’s Position On China Ties
Meta has said the acquisition will sever Manus’s connections to China. In comments to Nikkei Asia, a Meta spokesperson said the company will no longer have Chinese investors and will discontinue all services and operations in China following the transaction.
Featured image credits: Automated Marketer
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