Meta Acquires Manus AI for Over $2 Billion
Meta acquired Manus , a Singapore-based AI agent startup, for more than $2 billion in late December 2025 , marking its third-largest acquisition after WhatsApp and the Scale AI investment. The deal was negotiated in approximately ten days , reflecting Meta’s push to accelerate its agentic AI strategy.
Founded by Xiao HongDealroom has a profile for this one. Try Dealroom → in 2022 and launched publicly in March 2025 , Manus built an autonomous AI agent capable of executing complex, multi-step tasks with limited human oversight, spanning research, data analysis, web automation, and code execution. The company scaled rapidly, reaching $100 million in annual recurring revenue by December 2025 and a $125 million total revenue run rate , placing it among the fastest-growing AI agent platforms globally.
The transaction involved a complete buyout of existing shareholders , including Benchmark Capital , which invested $75 million at a $500 million valuation in April 2025 , alongside Tencent, ZhenFund, and HongShanDealroom has a profile for this one. Try Dealroom →. Xiao Hong joins Meta as Vice President , reporting to COO Javier OlivanDealroom has a profile for this one. Try Dealroom → . Meta confirmed that all Chinese ownership interests have been eliminated , Manus has ceased operations in China , and the team continues to operate from Singapore , with its technology being integrated across Meta AIDealroom has a profile for this one. Try Dealroom →, Facebook, Instagram , and WhatsApp .
Beyond its commercial significance, the acquisition reflects the regulatory and geopolitical forces reshaping the global AI ecosystem. Manus was originally founded in China and developed AI agents using third-party frontier models, including Anthropic’s Claude . In April 2025 , the company raised U.S. capital, placing it under the scope of U.S. outbound investment restrictions related to advanced AI development tied to China . Soon after the round became public, Manus relocated its headquarters to Singapore , preserving access to U.S. capital markets and regulatory alignment.
By mid-2025 , Manus had closed its China offices , ended collaborations with Alibaba on new AI agents, and abandoned plans to launch in China . On December 29, 2025 , Meta announced the acquisition after confirming that Manus had fully severed its operational and ownership ties to the country.
Taken together, the Manus acquisition illustrates the strategic effect of U.S. outbound investment controls . Rather than simply limiting capital flows, these measures are influencing where advanced AI companies locate, raise capital, and pursue exits. By exiting China’s AI ecosystem, Manus became eligible for acquisition by a U.S. technology incumbent—highlighting how policy constraints are reshaping the geography and ownership of frontier AI development.
Sources: Wall Street Journal
Reuters
Bloomberg
CNBC
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