Meta Acquires Singapore-Based AI Startup Manus for $2 Billion Amid Regulatory Scrutiny, Plans Integration Across Facebook, Instagram, and WhatsApp

Meta is acquiring Manus, a Singapore-based AI startup that gained rapid attention in Silicon Valley this year, in a deal reportedly worth $2 billion. Manus, founded just months ago, captured widespread interest with a viral demo showcasing an AI agent capable of performing complex tasks such as screening job candidates, planning vacations, and analyzing stock portfolios, claiming performance levels beyond OpenAI’s Deep Research.

Investors, including Benchmark, quickly backed Manus, boosting its valuation to $500 million by April despite early skepticism about its pricing models ranging from $39 to $199 per month. The startup has since proven its market strength, signing up millions of users and achieving over $100 million in annual recurring revenue, signaling a successful transition from viral sensation to profitable enterprise.

For Meta CEO Mark Zuckerberg, who has invested heavily in AI infrastructure, acquiring Manus provides both a revenue-generating AI product and technology that can be integrated into Facebook, Instagram, and WhatsApp. Meta plans to operate Manus independently while leveraging its advanced AI agent capabilities across its platforms.

The acquisition, however, has faced geopolitical concerns. Manus was initially founded by entrepreneurs who established their parent company in Beijing in 2022 before relocating to Singapore. Early funding also came from notable Chinese investors, including Tencent, raising questions in Washington. Senator John Cornyn of the Senate Intelligence Committee criticized American investment in the company, questioning whether it was prudent to “subsidize our biggest adversary in AI.”

To address these regulatory and security concerns, Meta confirmed that Manus AI will have no continuing Chinese ownership after the acquisition and will fully cease all operations and services in China. This move aims to alleviate scrutiny while allowing Meta to continue leveraging Manus’ AI capabilities for global applications.