Meta spends billions to acquire Manus! 20 billion valuation Chinese AI startup acquired

Meta will acquire the Chinese AI agency Manus by 2026 for several billion dollars, becoming the third-largest acquisition. Manus is headquartered in Singapore, valued at $20 billion, with annual revenue of $1 billion, having processed 147 trillion tokens and created 80 million virtual computers. This move aims to realize the “superintelligence” vision, with the company investing 70 billion dollars in AI infrastructure in 2025.

Meta’s AI Arms Race Upgrade Strategy

By 2025, Meta completed five AI-related acquisitions, including PlayAI, WaveForms, Rivos, Limitless, and now Manus. Behind this aggressive purchasing spree is Zuckerberg’s obsession with “superintelligence,” which he defines as “software that deeply understands us, comprehends our goals, and can help us achieve them.” Manus’s general AI agent technology is the key piece to realizing this vision.

Compared to competitors like OpenAI, Anthropic, and Google, Meta’s AI strategy is more aggressive. The company not only develops its own Llama large models but also fills capability gaps through intensive acquisitions. Manus’s “general agent” technology surpasses traditional chatbots, capable of independently performing research, automation, and other complex tasks. For example, users can ask Manus to open compressed files, evaluate job applications, and generate ranking reports—all without human intervention.

This capability is highly significant for Meta. The company plans to integrate Manus into products like Facebook, Instagram, WhatsApp, and Meta AI, giving billions of users “digital employees.” More importantly, Meta is testing a subscription service called “Meta AI+,” where Manus will provide core competitiveness for this paid product. Although Meta has increased advertising revenue through AI, it has yet to establish a direct AI subscription business; Manus could be the weapon to turn the tide.

From a financial investment perspective, Meta’s determination is unequivocal. In 2025, the company will invest at least $70 billion in building data centers and AI infrastructure, with even higher investments expected in 2026. Additionally, Meta has offered millions of dollars in annual salaries to attract top AI talent and earlier this year invested in data annotation company Scale AI, valued at $29 billion. This “burn money for technology” strategy shows Meta views AI as a strategic battle for survival.

Why is Manus worth $20 billion?

From a technological standpoint, Manus’s ability to “conduct extensive research and contextual reasoning” is at the forefront of current AI agent development. Over the past six months, OpenAI, Anthropic, and Google have been enhancing the intelligence of foundational models and optimizing development platforms. As a vertically integrated general agent product, Manus may be several months ahead of American competitors in product maturity. This time advantage is highly attractive to Meta, eager to catch up.

Manus’s global deployment is also a key selling point. Although owned by Beijing Butterfly Effect Technology, its headquarters are in Singapore with branches in Hong Kong. This structure allows it to leverage China’s engineering talent and data resources while avoiding the geopolitical risks between China and the US. For Meta, acquiring a Singapore-registered company is easier in terms of compliance than directly acquiring a Chinese firm.

Three Core Competitive Advantages

Multi-model Driven Virtual Computer Architecture: Manus runs on cloud-hosted virtual machines, operated as a multi-agent system driven by different models. This architecture enables AI not only to understand commands but also to manipulate file systems, execute code, and call APIs, achieving true task automation.

Performance surpassing OpenAI DeepResearch: When launched in March 2025, Manus claimed performance exceeding OpenAI’s AI agent DeepResearch. The company promoted the product by completing dozens of tasks for users free on the X platform, quickly building reputation. Processing 147 trillion tokens and operating 80 million virtual computers demonstrates that its technology has been validated at scale.

Rapid commercialization capability: Manus achieved $100 million in annual recurring revenue just eight months after launch, an extremely rare feat among AI startups. Most AI companies are still in the burn-money stage, but Manus has established a sustainable business model. This profitability is a core reason its valuation reaches $20 billion.

Geopolitical Under Currents in the AI Agent War

The decision to move Manus from Beijing to Singapore reflects the structural difficulties faced by Chinese AI startups. In recent years, many Chinese companies have relocated their headquarters to Singapore, betting that this trade hub can reduce disruptions caused by US-China tensions. Manus’s parent company, Butterfly Effect Technology, exemplifies this trend.

This migration has created a window for Meta’s acquisition. If Manus were still registered in Beijing, the deal might face strict scrutiny from the US Committee on Foreign Investment (CFIUS) or even be completely blocked. Registering in Singapore, while not eliminating regulatory risks entirely, significantly reduces political resistance. Meta emphasized in its announcement that Manus is “headquartered in Singapore,” deliberately downplaying its Chinese background.

From a broader industry perspective, China’s AI agent market is rapidly emerging. China International Capital Corporation (CICC) notes that overseas tech giants remain central to the global intelligent agent ecosystem, but domestic teams are becoming increasingly active. Companies like Manus, GenSpark, Flowith, Zhili, Minimax are launching general-purpose agent products. The Chinese government is also promoting policies—Wuhan’s “14th Five-Year Plan” aims for a smart device penetration rate exceeding 70%, and Chongqing plans to achieve significant progress in AI+ mobility by 2026.

Meta’s acquisition of Manus could trigger a chain reaction. If successful, giants like Google, Microsoft, and Amazon may follow suit, sparking a wave of acquisitions of Chinese AI startups. This could reshape the global AI landscape, combining Chinese technology with American capital and markets to create new species beyond current competitors. However, it could also lead to stricter technology export controls, with both US and Chinese governments potentially tightening cross-border AI transaction regulations.