At a Glance
- Meta acquires Singapore AI startup Manus for $2B.
- Manus grew from a $500M valuation in April to a $2B valuation.
- Manus reports > $100M annual recurring revenue and millions of users.
- Why it matters: Meta gains a profitable AI product amid scrutiny of its $60B infrastructure spend.
Meta Platforms has just acquired Singapore-based AI startup Manus for $2B, a deal that brings a cash-generating AI product into its portfolio. Manus, which has attracted millions of users and over $100M in annual recurring revenue, was valued at $500M in an April funding round.
Strategic Acquisition
The acquisition was announced after Meta entered negotiations with Manus, reportedly paying $2B-the valuation Manus was seeking for its next funding round. The deal positions Meta to accelerate its AI strategy with a proven, revenue-producing platform.
- Benchmark led a $75M round, valuing Manus at $500M and added Chetan Puttagunta to its board.
- Tencent, ZhenFund, and HSG (formerly Sequoia China) had invested in earlier rounds.
- Manus also secured a $10M round from Chinese investors.
Growth and Revenue
Manus announced it now has millions of users and generates more than $100M in annual recurring revenue from its membership service. The platform’s AI agents can screen job candidates, plan vacations, and analyze stock portfolios.
Geopolitical Concerns
The startup’s founders created its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore in mid-2025. This history has drawn attention from U.S. lawmakers. Senator John Cornyn has criticized Benchmark’s investment, raising concerns about American capital flowing to a Chinese-origin company.
Post-Acquisition Plans
Meta said it will keep Manus running independently and weave its AI agents into Facebook, Instagram and WhatsApp, where Meta AI is already available. The company also confirmed that Manus will no longer operate in China and will have no continuing Chinese ownership interests.
Meta spokesperson said:
> “There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China.”
| Round | Amount | Valuation |
|---|---|---|
| April 2024 | $75M | $500M |
| Next round | $2B | $2B |
Key Takeaways
- Meta pays $2B for a profitable AI startup.
- Manus brings >$100M ARR and millions of users to Meta.
- The deal removes Chinese ownership and operations from Manus.
With this acquisition, Meta adds a revenue-generating AI asset to its portfolio, potentially easing investor concerns over its hefty infrastructure spend.
