Meta to Acquire AI Startup Manus in $2 Billion Deal to Strengthen AI Agent Strategy

Meta Platforms has agreed to acquire Manus, a Singapore-based AI startup founded by Chinese entrepreneurs, in a deal valued at more than $2 billion, according to the WSJ. 

The acquisition ranks among the most high-profile examples of a U.S. technology giant buying an AI company developed within Asia’s rapidly growing startup ecosystem. Manus was reportedly seeking a fresh funding round at a $2 billion valuation when Meta initiated acquisition talks.

Manus’s AI Capabilities and Market Traction

Manus, led by co-founder and chief executive Xiao Hong, popularly known as “Red,” develops AI agents capable of conducting deep research, generating detailed reports, and building custom websites with minimal human input. 

The startup gained significant attention in March after previewing its AI agent, which showcased advanced capabilities using models from companies such as Anthropic and China’s Alibaba.

Since its spring launch, Manus has amassed millions of users, including subscribers who pay for advanced features such as research, coding, and analytical tasks. In December, the company announced it had surpassed $100 million in annual recurring revenue, just eight months after launch.

Strategic Fit Within Meta’s AI Roadmap

The acquisition reflects a strategic shift for Meta as it looks to strengthen its presence in monetizable AI products. Meta plans to continue operating and selling Manus’s services while integrating them into its broader ecosystem of social media and business tools. Xiao Hong is expected to report to Meta’s chief operating officer, Javier Olivan.

This move helps Meta deepen its position in the rapidly evolving AI agent segment, where competition is intensifying. Rivals such as Microsoft have already gained traction with products like Copilot, making AI agents a critical focus area.

Meta’s Broader AI Investment Push

The Manus acquisition follows a series of aggressive AI investments by Meta. Earlier this year, the company acquired a 49% stake in Scale AI at a $29 billion valuation and appointed its founder, Alexandr Wang, as chief AI officer. Meta has also ramped up hiring, offering lucrative compensation packages to attract top AI talent.

Also Read: Meta, Apple, Google, Amazon, Microsoft, Netflix Hiring Ramps Up in India as H-1B Rules Tighten!

Conclusion

Meta’s acquisition of Manus marks a significant step in its evolution from open-access AI models to scalable, enterprise-ready AI products. By bringing a fast-growing, Asia-built AI platform into its fold, Meta aims to accelerate innovation, expand AI agent adoption globally, and strengthen its competitive edge in the next phase of artificial intelligence.

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