In a major strategic move to bolster its artificial intelligence (AI) arsenal, Meta, the parent company of Facebook and Instagram, has finalised the acquisition of AI startup Manus. The deal, reported to be valued at more than $2 billion, marks a significant escalation in Meta's efforts to compete with rivals like Google and OpenAI.
Details of the Manus Acquisition
The acquisition was announced on Tuesday 30 December 2025. While Meta itself did not disclose the financial terms, The Wall Street Journal reported the transaction closed at a figure exceeding two billion dollars. Manus, a Singapore-based platform with previous Chinese connections, launched its first general-purpose AI agent earlier in the year.
In an official statement, Meta highlighted that "Manus is already serving the daily needs of millions of users and businesses worldwide." The tech giant plans to scale this service, integrating Manus's technology to deliver general-purpose AI agents across its consumer and business products, including within Meta AI.
Manus CEO Xiao Hong stated that joining Meta would allow the platform to build on a "stronger, more sustainable foundation" without altering its operational or decision-making processes. The company confirmed it would continue to offer its paid subscriptions via its own app and website.
Background and Strategic Implications
Manus has experienced remarkable growth, announcing earlier in December 2025 that it had surpassed $100 million in annual recurring revenue just eight months after its launch. Initial financial backers included China's Tencent Holdings, ZhenFund, and HSG. The platform was originally developed by Butterfly Effect (Monica.Im), a company founded in China before relocating to Singapore.
A Meta spokesperson confirmed on Tuesday that following the transaction, there would be "no continuing Chinese ownership interests in Manus AI." Consequently, the platform will cease its services and operations in China. Manus reiterated its commitment to operating from Singapore, where most of its employees are based.
Meta's Aggressive AI Investment Drive
This acquisition is a cornerstone of CEO Mark Zuckerberg's push to revitalise Meta's commercial AI initiatives. The company faces intense competition in the generative AI space from established players and startups alike.
The move follows another substantial investment made in June, when Meta committed $14.3 billion into AI data company Scale and recruited its CEO, Alexandr Wang, to help lead a team focused on developing "superintelligence" within the tech behemoth. The purchase of Manus directly intensifies Meta's aggressive drive to embed advanced AI capabilities across its vast social media and technology ecosystems.
