
Mark Zuckerberg has made another move.
Meta Platforms is set to acquire Manus, an AI startup based in Singapore that has generated significant buzz in Silicon Valley since its launch last spring with a demo showcasing an AI agent performing tasks like screening job applicants, organizing vacations, and evaluating stock portfolios. At the time, Manus claimed it surpassed the capabilities of OpenAI’s Deep Research.
In April, shortly after its debut, venture capital firm Benchmark spearheaded a $75 million funding round that valued Manus at $500 million post-money, with Benchmark general partner Chetan Puttagunta joining Manus’ board. Reports from Chinese news sources indicated that other prominent investors had already backed Manus, including Tencent, ZhenFund, and HSG (formerly Sequoia China) with a $10 million investment.
The company revealed in mid-December that it has acquired millions of users and is producing annual recurring revenue exceeding $100 million from its subscription service.
Around this time, Meta began discussions with Manus, according to the WSJ, which reports that the tech giant is paying $2 billion — the valuation Manus was reportedly pursuing for its upcoming funding round.
For Zuckerberg, who has aligned Meta’s vision with AI, Manus signifies a new opportunity: an AI product that is already profitable. This is particularly relevant as investors have become increasingly anxious about Meta’s $60 billion infrastructure investment and the tech sector’s debt-financed outlays for data center development.
Meta has stated that it will allow Manus to operate independently while integrating the startup’s AI agents into Facebook, Instagram, and WhatsApp, where Meta’s own chatbot, Meta AI, is already accessible to users.
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There is, however, an issue: Manus’ founders, originating from China, established its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore in the middle of this year. Whether this will raise concerns in Washington is yet to be determined, but Senator John Cornyn has already criticized Benchmark for its investment in the firm, echoing worries in May about American funds being funneled to a Chinese entity.
Cornyn, a Republican from Texas and a senior figure on the Senate Intelligence Committee, has consistently been one of Congress’ most outspoken advocates regarding China and tech competition, though he is not alone. Adopting a tough stance against China has emerged as one of the few truly bipartisan topics in Congress.
It comes as no surprise that Meta has informed Nikkei Asia that post-acquisition, Manus will sever its connections with Chinese financiers and will cease operations in China. “There will be no ongoing Chinese ownership interests in Manus AI following the transaction, and Manus AI will halt its services and operations in China,” a Meta spokesperson conveyed to the outlet.

