Mark Zuckerberg, CEO of Meta Platforms, is acquiring Manus, a fast-rising AI startup, for $2 billion.
The deal answers growing investor concerns because, unlike many AI tools, Manus already generates significant revenue.
Manus
Manus launched publicly last spring. Its debut included a demo video that quickly spread across Silicon Valley.
The video showed an AI agent performing real-world tasks; it screened job candidates, planned vacations, and analyzed stock portfolios. These demonstrations stood out for their practicality.
At launch, Manus claimed its system outperformed OpenAI’s Deep Research on certain tasks. That claim drew immediate attention.
Rapid Funding
In April, just weeks after launch, Benchmark led a $75 million funding round. The deal valued Manus at $500 million post-money.
Then, Benchmark general partner Chetan Puttagunta joined the company’s board. His involvement signaled strong confidence in the team.
Earlier funding had already come from major backers. Chinese media reports cited Tencent, ZhenFund, and HSG, formerly Sequoia China.
That earlier round reportedly totaled $10 million. By that point, Manus was no longer an unknown startup.
Real Revenue
In mid-December, Manus reported signing up millions of users. More importantly, it disclosed annual recurring revenue exceeding $100 million.
That revenue comes from paid memberships. Users subscribe to monthly and yearly plans.
This detail mattered because many AI startups struggle to monetize. Manus did not. It proved demand with paying customers. Soon after, Meta entered acquisition talks.
Also read: Top 10 Chinese AI Tools To Check Out
A $2 Billion Deal
According to The Wall Street Journal, Meta began negotiating with Manus around the time of its revenue announcement.
The reported purchase price is $2 billion. That figure aligns with the valuation Manus was seeking for its next funding round.
For Meta, the appeal was that Manus represents an AI product that already makes money.
This is especially significant given Meta’s massive AI spending. The company is investing heavily in infrastructure.
Reports estimate up to $60 billion. That includes data centers and computing resources.
Investors have grown uneasy about these costs. Manus could help change that narrative.
Manus Will Remain Independent But Integrated
Meta says Manus will continue operating independently. This approach allows the startup to maintain its pace and culture.
At the same time, Meta plans to integrate Manus AI agents into its platforms. These include Facebook, Instagram, and WhatsApp.
Meta AI already exists across these services, so Manus could expand what users can do inside them.
Tasks such as planning trips or evaluating candidates could occur directly within social apps.
Chinese Origins
The acquisition does come with complications. Manus was founded by Chinese entrepreneurs. Its parent company, Butterfly Effect, was established in Beijing in 2022.
The company relocated to Singapore earlier this year. Still, its origins have raised concerns in Washington.
Senator John Cornyn of Texas has already criticized Benchmark’s investment. He raised alarms in May about U.S. capital flowing into Chinese-linked technology companies.
Cornyn is a senior member of the Senate Intelligence Committee. He is known for his strong stance on China. However, skepticism toward Chinese tech influence is now bipartisan.
Meta has responded directly to these issues. The company told Nikkei Asia that Manus will cut all ties with Chinese investors after the acquisition.
In addition, Manus will discontinue its services and operations in China.
A Meta spokesperson confirmed the company’s intentions. There will be no continuing Chinese ownership interests following the transaction.
