Meta to acquire Manus, a Singapore-based AI startup for $2 billion

Tech giant Meta is acquiring Manus, a Singapore-based AI startup that became a Silicon Valley sensation this spring, in a deal reportedly valued at $2 billion.

The Wall Street Journal reported that the acquisition targets a company that has skyrocketed in value. Manus was founded just months ago with a viral demo featuring an AI agent capable of complex tasks, like screening job candidates, planning vacations, and analyzing stock portfolios, claiming to outperform OpenAI’s Deep Research.

From Viral Hit to Revenue Machine, Investors, including Benchmark, quickly backed the firm, driving its valuation to $500 million by April. While Bloomberg initially questioned the company’s aggressive pricing models ($39 to $199 per month). Manus recently silenced skeptics by revealing it had signed up millions of users and crossed $100 million in annual recurring revenue.

For Meta CEO Mark Zuckerberg, who has spent billions on AI infrastructure, Manus represents an AI product that is already profitable—Meta plans to utilize Manus independently while incorporating its agent technology into Facebook, Instagram, and WhatsApp.

The deal is not without difficulties. Manus was founded by entrepreneurs who established their parent company in Beijing in 2022 before moving to Singapore earlier this year. The startup also secured early funding from prominent Chinese investors, including Tencent.

This lineage has drawn fire from Washington. Senator John Cornyn, a senior member of the Senate Intelligence Committee, criticized American investment in the company, asking if it was wise to “subsidize our biggest adversary in AI.”

In anticipation of regulatory scrutiny, Meta has decided to cut these ties. A company spokesperson informed Nikkei Asia that after the transaction, Manus AI will have “no continuing Chinese ownership interests” and will completely cease its operations and services in China.