Meta Accelerates AI Strategy with Multi-Billion Dollar Purchase of Startup Manus

2025-12-30 companies

Menlo Park, Tuesday, 30 December 2025.
Negotiated in just ten days, this estimated $2 billion deal marks Meta’s third-largest acquisition ever, securing Singapore-based AI agent developer Manus to bolster its autonomous capabilities.

A Rapidly Concluded Deal

Meta Platforms (META) officially announced the acquisition of Manus on December 30, 2025, capping off a year defined by aggressive infrastructure expansion [1]. The transaction, which values the Singapore-based startup between $2 billion and $3 billion, was finalized in a remarkably short window of approximately ten days [4][8]. This valuation cements the deal as Meta’s third-largest acquisition in its history, trailing only the purchase of WhatsApp and the $14.3 billion investment in Scale AI executed earlier in June 2025 [1][7]. The acquisition targets the parent company, Butterfly Effect, founded by Xiao Hong, who is set to join Meta as a Vice President while the subsidiary continues its operations independently [7]. The speed of the negotiation was such that early investors reportedly questioned the legitimacy of the offer, given that Manus was simultaneously in the process of raising a new funding round at a $2 billion valuation [3].

Explosive Growth and Metrics

The financial trajectory of Manus illustrates the feverish demand for autonomous AI agents capable of complex workflows. Although the company only launched its first general AI agent in 2025, it reported an annualized average revenue of over $100 million just eight months later [1]. By mid-December, the company had reached $100 million in Annual Recurring Revenue (ARR), with a revenue run rate exceeding $125 million [1][7]. In terms of technical throughput, the platform has processed more than 147 trillion tokens and powered the creation of over 80 million virtual computers, positioning itself as a critical execution layer for enterprise automation [2]. This growth represents a significant leap in valuation; in April 2025, the company raised $75 million in a Series B round led by Benchmark at a valuation of approximately $500 million [1]. This implies a value increase of 300% in less than nine months.

Geopolitical Strategy and Origins

While now headquartered in Singapore, the company’s origins and recent movements reflect the complex geopolitical landscape of the semiconductor and AI sectors. Founded in Wuhan in 2022, the startup moved its headquarters to Singapore in June 2025, a migration widely interpreted as a strategy to mitigate risks associated with Sino-U.S. tensions [1][4][7]. Following the relocation, the company laid off the majority of its Beijing staff in July 2025 [1]. Despite the shift in domicile, Manus maintained significant ties to the Asian market, including a strategic partnership with Alibaba’s Qwen AI team announced in March 2025 [1]. Xiao Hong, CEO of Manus, emphasized that the acquisition would provide a “stronger, more sustainable foundation” without altering the company’s decision-making processes or its operational base in Singapore [2].

Meta’s Year of Infrastructure Expansion

This acquisition serves as the bookend to a year where Meta has heavily prioritized securing AI talent and infrastructure. Beyond the massive capital injection into Scale AI—which brought CEO Alexandr Wang onto Meta’s AI leadership team—the tech giant also acquired the AI-wearables startup Limitless earlier in December [1]. Meta plans to integrate Manus’s capabilities directly into its products, including Meta AI, while continuing to sell the startup’s subscription services to enterprise and consumer markets [2][4]. The integration of general-purpose agents aligns with the industry’s broader pivot toward autonomous tools that can handle end-to-end research and automation tasks, moving beyond simple conversational interfaces [2].

Sources

Artificial Intelligence Mergers Acquisitions