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Meta is making another big bet on artificial intelligence—this time by buying Manus, the fast-rising Singapore-based startup whose viral demo turned it into one of the most talked-about AI agent companies of the year.
According to reports, Meta Platforms has agreed to acquire Manus for around $2 billion, matching the valuation the company was reportedly targeting for its next funding round. The deal adds a rare asset to Meta’s AI portfolio: a consumer-facing AI product that appears to be generating real revenue, not just research hype.
A viral AI agent that quickly became a business
Manus burst onto the scene this spring with a polished demo video showing an AI agent handling tasks that people actually care about—screening job candidates, planning trips, and breaking down stock portfolios. The startup also claimed its system outperformed OpenAI’s “Deep Research,” a comparison that helped fuel curiosity across Silicon Valley.
Momentum followed quickly. By April, venture capital firm Benchmark led a $75 million round that valued Manus at about $500 million post-money, with general partner Chetan Puttagunta joining its board. Chinese media also reported earlier backing from major names including Tencent, ZhenFund, and HSG (formerly Sequoia China) through a prior $10 million round.
Not everyone was immediately convinced. When Manus introduced subscription pricing at $39 or $199 per month—while still described as being in a testing phase—some observers questioned whether the strategy was too aggressive. Still, the company later said it had attracted millions of users and surpassed $100 million in annual recurring revenue, a milestone many AI startups talk about but few reach.
Why Manus matters to Zuckerberg’s AI strategy
For Mark Zuckerberg, Manus arrives at a critical moment. Meta has been pouring enormous sums into AI infrastructure—reportedly tens of billions of dollars—while investors watch closely for clearer paths to monetization. In that context, Manus is attractive because it’s not just a model or a lab project; it’s an AI agent product with paying customers.
Meta says Manus will continue operating independently, while its AI agents are expected to be integrated across Meta’s biggest apps, including Facebook, Instagram, and WhatsApp. Meta AI is already present in those platforms, and adding specialized “agent” capabilities could make the experience feel more useful: less chatbot, more digital assistant that can take action.
A political wrinkle: China ties and U.S. scrutiny
One complicating factor is Manus’s origin story. The startup launched only about eight months ago and has Chinese founders who previously built its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore earlier this year. In today’s regulatory climate, any perceived connection between advanced AI and Chinese ownership can trigger scrutiny in Washington.
That pressure has already surfaced publicly. Senator John Cornyn, a senior member of the Senate Intelligence Committee, criticized Benchmark’s involvement earlier this year, arguing that U.S. capital should not help strengthen an AI competitor tied to America’s “biggest adversary.” Cornyn is known for a hawkish stance on China, but skepticism toward China-linked tech deals has become broadly bipartisan.
Meta has attempted to get ahead of the issue. The company told Nikkei Asia that following the acquisition, Manus will have no continuing ties to Chinese investors and will stop operating in China. If implemented as stated, that could reduce regulatory friction—though questions around governance, data access, and cross-border AI development are likely to remain part of the conversation.
For Meta, the message is clear: the race is no longer just about building bigger AI models. It’s about shipping AI products people use—and pay for.
Source: techcrunch
Comments
Marius
Smart move by Meta buying something that actually makes money. Feels a bit overhyped tho. 39 or 199 subscriptions? user privacy needs to be front and center
dataflux
Wait really? Meta paid 2B for Manus, sounds wild. If they cut Chinese ties who checks governance and data access tho? smells rushed
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