Meta has closed the purchase of manusa Singapore-based artificial intelligence startup, for more than $2 billion. Throughout this year, Meta has reinforced its AI operations by acquiring several companies focused on different specialties. In July bought Play AIfocused on voice with AI. In August acquired WaveFormsan audio-focused startup. And in September was done with Rivosa company specialized in the design of semiconductors and RISC-V chips.
Manus’s is already the fourth major purchase this year, and it is his hope not to be diluted in the race to dominate AI when all this time he has focused his efforts on Llama and his open weights approach.
Why it is important. The Agentic AI (agents capable of performing complex tasks with minimal human supervision) has long become the new battlefield for big technology companies. Although companies like Microsoft or OpenAI had sufficient resources to develop in this field, Meta needed to strengthen its position in this segment if it did not want to be left behind.
Manus came to reach 100 million dollars in annual recurring revenue just eight months after its launch, which offers Meta a product that generates money right away, something not very common in this sector.
What does Manus do? The startup rose to fame in March with a video demo that went viral, showing how its AI agent was able to produce detailed research reports, build custom web pages, filter job candidates, plan vacations, and analyze investment portfolios. All using AI models developed by companies such as Anthropic and Alibaba.
At the time, Manus even claimed to surpass OpenAI’s Deep Research. Currently, the company has around 100 employees, mainly in Singapore, offers subscriptions of $20 to $200 per month and already has a user base of millions.
Initial success. Manus emerged a few months after the debut of DeepSeekthe Chinese model that shook the foundations of the industry due to its capabilities supposedly developed with less computing power than its American rivals. Just like account WSJ, the startup secured a $75 million funding round led by Benchmark in April, which valued the company at $500 million. Among its investors are firms such as Tencent, ZhenFund or HSG.
Untying ties in China. The parent company behind Manus, Butterfly Effect, was founded in 2022 in Beijing by two Chinese entrepreneurs, including its CEO Xiao Hong, known as ‘Red’. Although most of its researchers and engineers were located in China, Manus launched outside the country because it used American AI models that are not available there. Shortly after securing its investment with Benchmark, the company officially moved its headquarters to Singapore. According to account WSJ, Manus has ruled out developing a version for the Chinese market.
Goal declared to Nikkei Asia that, following the acquisition, Manus will have no ties to Chinese investors and will no longer operate in China. All existing investors have been excluded from the operation, according to they count from Bloomberg.
What’s coming now? Meta plans to keep Manus running independently while integrating its agents into Facebook, Instagram and WhatsApp, platforms where Meta AI is available. According to WSJManus CEO Xiao Hong will report directly to Javier Olivan, Meta’s chief operating officer. “Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” Xiao stated in the official announcement.
No return guarantees. Mark Zuckerberg continues his mission to prove that AI can deliver tangible returns. Goal plans to spend $600 billion in American infrastructure over the next three years, much of it related to AI. Just like assures Bloomberg, it is an amount that causes some skepticism in some investors, since there are no guarantees that this expense will generate significant income soon.
Cover image | TechCrunch
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