Meta Makes a Big AI Acquisition

Meta is buying artificial intelligence startup Manus, as the owner of Facebook and Instagram continues an aggressive push to amp up AI offerings across its platforms. The California tech giant declined to disclose financial details of the acquisition, but sources tell the Wall Street Journal that Meta closed the deal at more than $2 billion. Meta made the offer as Manus was seeking a fresh round of fundraising, according to the Journal's sources. Manus, a Singapore-based platform with some Chinese roots, launched its first "general-purpose" AI agent earlier this year. The platform offers paid subscriptions for customers to use this technology for research, coding, and other tasks.

"Manus is already serving the daily needs of millions of users and businesses worldwide," Meta said in a Monday announcement, adding that it plans to scale this service—as Manus will "deliver general-purpose agents across our consumer and business products, including in Meta AI." The platform has grown rapidly over the past year. Earlier this month, Manus announced that it had crossed the $100 million mark in annual recurring revenue, just eight months after launching. Xiao Hong, CEO of Manus, added that joining Meta will allow the platform to "build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made." Manus confirmed that it would continue to sell and operate subscriptions through its own app and website.

Xiao Hong, CEO of Manus, said joining Meta will allow the platform to "build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made." Manus confirmed that it would continue to sell and operate subscriptions through its own app and website. The Financial Express describes Xiao, nicknamed "Red Xiao," as a "33-year-old Chinese prodigy." According to the Journal's sources, he will now report to Javier Olivan, Meta's chief operating officer.

Some of Manus' initial financial backers reportedly included China's Tencent Holdings, ZhenFund and HSG, along with the company that first launched the platform—Butterfly Effect, which was founded in China before moving to Singapore. A Meta spokesperson confirmed on Tuesday that there would be "no continuing Chinese ownership interests in Manus AI" following its transaction, and that the platform would also discontinue its services and operations in China. Manus reiterated that it would continue to operate in Singapore, where most of its employees are based.