Meta's Acquisition of AI Startup Signals Major Shift in Automation Strategy

Meta's Acquisition of AI Startup Signals Major Shift in Automation Strategy

Meta's acquisition of Manus for over $2 billion marks a significant move in AI, integrating automation tools that serve millions and generate $100 million annually. What’s next?

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Meta has finalized the acquisition of the AI startup Manus in a deal exceeding $2 billion, marking one of the most significant purchases involving a company from China's AI sector. The acquisition enables Meta to bolster its capabilities in automation technologies, particularly in tasks like market research and website creation.

Founded in March 2025, Manus, which was previously known as Butterfly Effect, emerged shortly after another AI startup, DeepSeek. The company positions itself as a leader in developing AI agents capable of performing complex tasks autonomously, leveraging models from third-party sources such as Anthropic's Claude 3.5 Sonnet and Alibaba's Qwen.

Despite recent layoffs affecting most of its staff in Beijing, Manus plans to expand its global footprint from its new headquarters in Singapore. The startup claims to be meeting the daily needs of millions of users, reporting an annualized revenue of over $100 million within just eight months of its launch. Manus CEO Xiao Hong expressed optimism regarding the acquisition, stating it facilitates a more robust operational framework while maintaining the company's existing decision-making processes.

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