Tech and Telecom

Meta is Buying $2 Billion AI Startup That Claims to Beat OpenAI

Meta Platforms is acquiring Manus, a Singapore-based artificial intelligence startup that gained rapid attention in Silicon Valley after its public debut last spring, according to a report by The Wall Street Journal.

Manus first drew interest after releasing a demo video that showed its AI agent performing tasks such as screening job candidates, planning vacations, and analyzing stock portfolios. At the time, the company claimed its system outperformed OpenAI’s Deep Research.

Manus’s Rapid Growth

In April 2025, weeks after launch, venture capital firm Benchmark led a $75 million funding round that valued Manus at $500 million post-money. Benchmark general partner Chetan Puttagunta joined Manus’ board as part of the deal.

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Chinese media outlets later reported that other investors had already backed the startup through a $10 million round, including Tencent, ZhenFund, and HSG, formerly known as Sequoia China.

Manus recently disclosed that it has signed up millions of users and reached more than $100 million in annual recurring revenue.

Deal Details

According to the WSJ, Meta agreed to pay $2 billion for Manus, matching the valuation the startup was reportedly seeking for its next funding round.

For Mark Zuckerberg, the acquisition brings in an AI product that is already generating significant revenue. The move comes as investors have grown more cautious about Meta’s heavy AI-related spending, including a reported $60 billion investment in infrastructure and data center expansion across the industry.

Meta said it plans to keep Manus operating independently while integrating its AI agents into Facebook, Instagram, and WhatsApp, where Meta AI is already available.

Concerns Over Chinese Backing

One complication surrounding the deal involves Manus’ origins. The startup’s Chinese founders created its parent company, Butterfly Effect, in Beijing in 2022 before relocating operations to Singapore in mid-2025.

This background has already drawn political attention in Washington. Senator John Cornyn, a senior member of the Senate Intelligence Committee, previously criticized Benchmark’s investment in Manus, citing concerns over US capital supporting Chinese-linked technology firms. Cornyn has long taken a hard stance on China, a position that has increasingly gained bipartisan support in Congress.

Meta told Nikkei Asia that following the acquisition, Manus will sever all ties with Chinese investors and halt operations in China. A Meta spokesperson said there will be no continuing Chinese ownership in Manus and that the company will discontinue its services in the country.

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Published by
Afaq Wajdan Malik