Nvidia is reportedly in advanced discussions to purchase the Israeli artificial intelligence company AI21 Labs, with the deal potentially reaching as high as $3 billion. In 2023, AI21 Labs was valued at approximately $1.4 billion during a funding round, which saw participation from both Nvidia and Google's parent company, Alphabet.

Nvidia negotiating to purchase AI21 Labs for as much as $3 billion

A sleek, sunlit corporate boardroom with floor-to-ceiling windows overlooking a modern city skyline. Two silhouetted executives in business attire shake hands over a glass table strewn with documents—one prominent sheet titled “AI21 Labs” and the number “$3 B” subtly stamped in gold. On the far wall, a large, glowing green Nvidia logo anchors the scene, natural morning light casting warm reflections across the table.

Nvidia in advanced talks to acquire Israeli AI startup AI21 Labs for up to $3 billion - The Jerusalem Post

- Nvidia is negotiating to acquire AI21 Labs for nearly $3 billion.  
- AI21 Labs was valued at $1.4 billion during its recent funding round.  
- Both Nvidia and Google participated in the funding for AI21 Labs.  

Nvidia in advanced talks to acquire Israeli AI startup AI21 Labs for up to $3 billion A 2023 funding round valued AI21 at $1.4 billion. Nvidia and Alphabet's Google participated in that funding.

NVIDIA ( photo credit : REUTERS/ANN WANG )

Nvidia in talks to acquire AI21 Labs for up to $3 billion

Mark Zuckerberg, the CEO of Meta, has embarked on an intensive recruitment campaign this year with the goal of assembling a top-tier AI team. 

Meta Platforms is set to acquire Manus, a Singapore-based startup founded by Chinese entrepreneurs, known for its in-depth research and various services for clients. This acquisition is valued at over $2 billion, as reported by sources familiar with the transaction. Manus had been looking to raise capital through a funding round, with a projected valuation of $2 billion when Meta initiated its interest in the firm.

Xiao Hong, better known as "Red," is the co-founder and CEO of Manus and will now report to Meta's COO, Javier Olivan, as part of the acquisition deal. 

This move marks one of the most prominent examples of a major American technology firm purchasing AI innovations from Asia’s thriving AI and startup sector. Manus gained significant attention after showcasing an AI agent in March that can generate comprehensive research reports and create customized websites, utilizing AI models from technology companies like Anthropic and Alibaba.

The demonstration followed the introduction of DeepSeek, an AI model from China that generated buzz in Silicon Valley due to its remarkable functions and the assertion from its creators that it was built with considerably less computing power than its U.S. counterparts.

This acquisition indicates a strategic pivot for Meta, which is making substantial investments in artificial intelligence to stay competitive against tech giants like Google, Microsoft, and OpenAI. By securing this deal, the social media powerhouse aims to bolster its position in the burgeoning sector of AI agents, a highly competitive arena where various companies are developing tools capable of executing complex tasks with minimal human oversight. Notably, Microsoft has already seen success with its AI assistant, Copilot.

Meta Acquires AI Startup Manus for Over $2 Billion

A bright, sunlit corporate atrium with floor-to-ceiling glass walls. Two sharply dressed executives shake hands over a polished marble table, atop which sits a tasteful “$2 B+” nameplate. Behind them, a large Meta logo is mounted prominently on the wall. To one side, a sleek metallic plaque reads “Manus” beside a glass door. Soft reflections on the marble floor trace subtle, abstract circuit-like patterns hinting at AI innovation.

Exclusive | Meta Buys AI Startup Manus for More Than $2 Billion - The Wall Street Journal

- Meta Platforms is acquiring AI startup Manus for over $2 billion.  
- Manus specializes in AI research, capable of producing detailed reports and websites.  
- The acquisition highlights the growing competition among U.S. tech firms in AI innovation.  

Meta Chief Executive Mark Zuckerberg went on a recruiting blitz this year to build an AI dream team. Associated Press

Meta Platforms has agreed to acquire AI startup Manus, a Singapore-based company with Chinese founders that conducts deep research and performs other tasks for paying users.

Meta is closing the deal at more than $2 billion, according to people familiar with the acquisition. Manus was seeking a fresh round of fundraising with a valuation of $2 billion when Meta approached the startup, some of the people said.

Manus’s co-founder and chief executive, Xiao Hong , who often goes by the nickname “Red,” will report to Javier Olivan , chief operating officer of Meta, some of the people said.

The acquisition is among the highest-profile examples of a major U.S. tech company buying an artificial-intelligence product developed in Asia’s AI and startup ecosystem.

Manus gained a wide following after previewing in March an AI agent capable of producing detailed research reports and building custom websites, using AI models developed by companies such as Anthropic and China’s Alibaba. That demo followed the release of DeepSeek, a made-in-China AI model that rocked Silicon Valley because of its advanced capabilities, coupled with claims by its developer that it was developed with far less computing power than American rivals.

The deal is a move in a new direction for Meta, which is investing aggressively in AI to compete with Google, Microsoft and OpenAI. The deal would help the social-media giant cement its position in the product segment of AI agents, an increasingly intense battlefield of AI companies that make tools to conduct complex tasks with minimal human input. Microsoft has operated a popular AI assistant, Copilot.

Exclusive | Meta Buys AI Startup Manus for More Than $2 Billion

Mark Zuckerberg, the CEO of Meta, has embarked on an intense recruitment campaign this year aimed at assembling a premier team focused on artificial intelligence. 

In a significant move, Meta Platforms has decided to acquire Manus, an AI startup based in Singapore, which was founded by Chinese entrepreneurs. This company specializes in deep research and offers various services to its subscription-based user base.

The acquisition deal is reportedly valued at over $2 billion, as disclosed by individuals informed about the transaction. Manus was in the process of seeking additional funding with a valuation matching this amount when Meta initiated discussions with them.

Xiao Hong, the co-founder and CEO of Manus—often referred to as “Red”—will now report directly to Javier Olivan, who serves as Meta's chief operating officer, according to sources.

This acquisition stands out as a prominent example of a leading U.S. technology firm integrating an AI product developed within Asia's thriving AI landscape and startup community.

Manus has gained notable attention for its recent demonstration of an AI agent designed to generate detailed research reports and create custom websites, utilizing AI models from companies including Anthropic and China's Alibaba. This showcase followed the introduction of DeepSeek, a homegrown Chinese AI model that made waves in Silicon Valley due to its sophisticated capabilities and the assertion that it was developed with significantly less computing power compared to its American counterparts.

This acquisition marks a strategic pivot for Meta, which is making substantial investments in AI as it strives to compete with industry giants such as Google, Microsoft, and OpenAI. By acquiring Manus, Meta aims to strengthen its foothold in the burgeoning market of AI agents—an arena buzzing with companies focused on creating tools that perform intricate tasks with minimal human intervention. Notably, Microsoft continues to lead with its well-regarded AI assistant, Copilot.

A sleek sunlit corporate boardroom with warm natural light flooding through floor-to-ceiling windows, two senior executives in business attire shaking hands over a polished wooden table strewn with leather-bound contracts stamped “$2 B+,” a large Meta logo displayed prominently on the back wall, and a subtle Manus emblem embossed on one of the folders, with a distant city skyline visible beyond the glass.

- Meta is acquiring Singapore-based AI startup Manus for over $2 billion.  
- Manus developed an AI agent for detailed research reports and custom websites.  
- This acquisition strengthens Meta's position in the competitive AI product market.  

In recent years, many enterprises have been experimenting with various AI tools to shape their adoption strategies. However, investors believe this phase of exploration will soon conclude.

A recent TechCrunch survey involving 24 venture capitalists focused on enterprises indicated that a significant majority expect companies to boost their AI budgets by 2026, albeit in a targeted manner. Many investors anticipate that this increased spending will be funneled toward fewer contracts rather than across a wide array of solutions.

Andrew Ferguson, a vice president at Databricks Ventures, forecasts that 2026 will mark a pivotal shift for enterprises as they refine their investments and identify key players in the AI landscape. “Currently, businesses are trialing several tools for the same use case, with a flood of startups targeting specific market areas, making it challenging to see clear differentiation even during the proof-of-concept phase,” Ferguson explained. “As enterprises experience tangible proof of AI's effectiveness, they will trim their experimental budgets, eliminate redundant tools, and reinvest the savings into technologies that have demonstrated real results.”

Rob Biederman, managing partner at Asymmetric Capital Partners, echoed Ferguson's outlook. He envisages that enterprises will not only streamline their individual spending but will also tighten overall AI expenditures across the industry to select a handful of vendors. “Budgets will rise for a select few AI products that show clear results, while spending on everything else will sharply decline,” Biederman noted. “We foresee a division where a small number of vendors command a significant share of enterprise AI funding, while many others may see stagnant or reduced revenue.”

Scott Beechuk, a partner at Norwest Venture Partners, believes enterprises will allocate more resources towards tools that enhance the safety of AI deployment. “Organizations now understand that genuine investment is in the safeguards and oversight mechanisms that ensure AI reliability,” Beechuk said. “As these advancements progress and risks diminish, companies will gain confidence to move from pilot projects to full-scale implementations, leading to increased budgets.”

Harsha Kapre, director at Snowflake Ventures, predicts that AI spending in enterprises will focus on three key areas in 2026: reinforcing data infrastructures, optimizing models post-training, and consolidating tools. “[Chief investment officers] are actively curbing software-as-a-service proliferation and transitioning to unified, intelligent systems that reduce integration costs and provide measurable returns on investment,” noted Kapre. “AI-driven solutions will likely be the primary beneficiaries of this transition.”

As the landscape shifts from experimentation to focused investment, the impact on startups remains uncertain. It's conceivable that AI startups could reach a critical inflection point similar to that experienced by SaaS companies in the past.

Firms with unique, hard-to-imitate products, such as specialized solutions or those utilizing proprietary data, are likely to continue growing. In contrast, startups offering services akin to those from major players like AWS or Salesforce might struggle to secure funding and pilot projects.

Investors share these concerns. When asked about the characteristics of a defensible AI startup, several VCs highlighted ventures with proprietary data and offerings that are not easily replicated by larger tech firms or major language model companies as the most secure.

If investor predictions materialize and enterprises streamline their AI expenditures next year, 2026 could well be a year of increased budgets for businesses while leaving many AI startups without a larger piece of the financial pie.

Investors anticipate increased enterprise spending on AI in 2026, but with fewer suppliers.

A sunlit modern boardroom with a group of sharply dressed VCs gathered around a sleek glass table, natural morning light flooding through floor-to-ceiling windows. On a projector screen at the front, a bold “2026 AI Spending” graph soars upward. On the table lie three small vendor placards—two pushed aside, one left standing front and center—capturing the shift to fewer AI suppliers.

VCs predict enterprises will spend more on AI in 2026 — through fewer vendors - TechCrunch

- Investors expect enterprise AI budgets to increase in 2026, focusing on fewer contracts.  
- Enterprises will prioritize safe AI tools and consolidate spending towards proven solutions.  
- Startups with distinctive products may thrive, while others could struggle to secure funding.

Enterprises have been piloting and testing different AI tools for the past few years to figure out what their adoption strategy will look like. Investors think that period of experimentation is coming to an end.

TechCrunch recently surveyed 24 enterprise-focused VCs and an overwhelming majority predicted enterprises will increase their budgets for AI in 2026 — but not for everything. Most investors said this budget increase will be concentrated, and that many enterprises will spend more funds on fewer contracts.

Andrew Ferguson, a vice president at Databricks Ventures, predicted 2026 will be the year that enterprises start consolidating their investments and picking winners.

“Today, enterprises are testing multiple tools for a single-use case, and there’s an explosion of startups focused on certain buying centers like [go-to-market], where it’s extremely hard to discern differentiation even during [proof of concepts],” Ferguson said. “As enterprises see real proof points from AI, they’ll cut out some of the experimentation budget, rationalize overlapping tools and deploy that savings into the AI technologies that have delivered.”

Rob Biederman, a managing partner at Asymmetric Capital Partners, agreed. He predicts that enterprise companies will not only concentrate their individual spending, the broader enterprise landscape will narrow its overall AI spending to only a handful of vendors across the entire industry.

“Budgets will increase for a narrow set of AI products that clearly deliver results and will decline sharply for everything else,” Biederman said. “We expect a bifurcation where a small number of vendors capture a disproportionate share of enterprise AI budgets while many others see revenue flatten or contract.”

Focused investments

Scott Beechuk, a partner at Norwest Venture Partners, thinks enterprises will increase their spending on the tools that make AI safe for enterprises to use.

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“Enterprises now recognize that the real investment lies in the safeguards and oversight layers that make AI dependable,” Beechuk said. “As these capabilities mature and reduce risk, organizations will feel confident shifting from pilots to scaled deployments, and budgets will increase.”

Harsha Kapre, a director at Snowflake Ventures, predicted enterprises will spend on AI in three distinct areas in 2026: strengthening data foundations, model post-training optimization, and consolidation of tools.

“[Chief investment officers] are actively reducing [software-as-a-service] sprawl and moving toward unified, intelligent systems that lower integration costs and deliver measurable [return on investment],” Kapre said. “AI-enabled solutions are likely going to see the biggest benefit from this shift.”

A shift away from experimentation and towards concentration will affect startups. What’s not clear, is how.

It’s possible that AI startups will reach the same reckoning point that SaaS startups arrived at a few years ago.

The companies operating hard-to-replicate products such as vertical solutions or those built on proprietary data, will likely still be able to grow. Startups with products similar to those offered by large enterprise suppliers like AWS or Salesforce, may start to see pilot projects and funding dry up.

Investors see this possibility too. When asked how they know that an AI startup has a moat, multiple VCs said companies with proprietary data and products that can’t easily be replicated by a tech giant or large language model company are the most defensible.

If investor predictions are true and enterprises do start to concentrate their AI spend next year, 2026 could be the year enterprise budgets increase but many AI startups don’t see a bigger slice of the pie.

VCs predict enterprises will spend more on AI in 2026 — through fewer vendors

As 2026 approaches, more private market managers are setting their sights on attracting defined contribution (DC) plans. However, it appears that sponsors are exercising a degree of caution regarding these emerging opportunities. Historically, when new investment products surface, sponsors tend to adopt a wait-and-see attitude, and this time is no different.

AI continues to be a focal point for venture capital as we approach 2026, with IPO opportunities set to open selectively.

Warm morning sunlight floods a sleek, glass-walled boardroom high above a city skyline. A circle of smartly dressed investors raises champagne flutes around a polished table topped by a glowing neural-network orb. Behind them, a large glass portal etched with “IPO” swings open, letting in golden confetti and a gentle breeze. Outside the window, a few gold balloons drift upward against a clear sky, symbolizing selective market entry as venture capital’s AI star shines on into 2026.

AI still the star for venture capital heading into 2026, IPO window to selectively open - Pensions & Investments

- Private markets managers are preparing to engage with DC plans by 2026.  
- Sponsors remain cautious about embracing new private market investment products.  
- The evolving landscape may lead to increased competition among private market managers.  

More private markets managers are ready to romance DC plans in 2026, but sponsors will play hard to get

With 2026 promising to offer more ways for investments in private markets to enter the DC arena, sponsors are reacting as they usually do when faced with new products: they are cautious.

AI still the star for venture capital heading into 2026, IPO window to selectively open

Meta has made headlines by announcing its acquisition of the AI platform Manus, a move aimed at expediting the incorporation of advanced artificial intelligence into its offerings.

Manus, headquartered in Singapore, generated significant buzz in Silicon Valley earlier this year with its demonstration of an AI agent capable of managing a wide range of tasks, including screening job candidates, organizing travel itineraries, and evaluating investment portfolios. As reported by TechCrunch, Manus has asserted that its technology exceeds the capabilities of OpenAI’s Deep Research.

This acquisition aligns with Meta Platforms' overarching strategy to utilize AI as a crucial growth driver. Although the financial specifics have not been officially revealed, insider reports suggest that Meta is set to pay around $2 billion for Manus, which matches the valuation Manus sought for its upcoming funding round. Reuters previously indicated that Manus's valuation could be between $2 billion and $3 billion.

Earlier this year in April, Manus successfully secured $75 million in a funding round led by Benchmark, at which point its valuation hovered around $500 million. Prior to this round, other investors like Tencent, ZhenFund, and HSG, previously known as Sequoia Capital China, had already contributed financially.

What stands out about Manus is its impressive commercial success as an emerging player. According to TechCrunch, the platform boasts millions of users and has achieved over $100 million in annual recurring revenue, distinguishing itself from many other AI startups still striving for a viable revenue model.

Moving forward, Meta plans for Manus to operate independently for the time being, while gradually incorporating its AI agents into its established platforms such as Facebook, Instagram, and WhatsApp, where Meta AI is already present. For Meta, Manus represents not just a technological advance but also a unique example of an AI solution that successfully generates revenue—particularly significant in light of the billions Meta is investing in AI infrastructure.

The acquisition carries geopolitical implications as well. The founders of Manus, who are of Chinese descent, established their parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore this year. This has prompted political scrutiny in the United States, with Senator John Cornyn from Texas expressing concerns over American investments in Chinese AI enterprises and alerting to potential strategic risks.

In response to these concerns, Meta has communicated to Nikkei Asia that they will implement clear measures post-acquisition. The company has assured that no Chinese investors will remain involved with Manus, and all operations in China will cease. This strategy aims to eliminate regulatory and national security challenges.

Meta acquires Chinese AI startup Manus for $2 billion.

In a sunlit, modern glass‐walled boardroom overlooking a city skyline, two suited executives shake hands over a glossy table strewn with signed documents. A bold Meta logo looms on a large digital display behind them. On the table, a prominent contract stamped “$2 B” lies next to a single Chinese flag standing upright. Natural morning light casts warm reflections across the scene, emphasizing the moment of the $2 billion acquisition.

Meta pays $2 billion for Chinese AI startup Manus - Techzine Global

- Meta acquires Singapore-based AI platform Manus for approximately $2 billion to enhance AI integration.  
- Manus has achieved significant traction, generating over $100 million in annual recurring revenue.  
- Meta will ensure no Chinese investors remain involved in Manus post-acquisition to address security concerns.  

Meta has announced that it is acquiring the AI platform Manus. With this acquisition, Meta aims to accelerate the pace at which advanced artificial intelligence is integrated into its services.

Manus is based in Singapore and attracted a lot of attention in Silicon Valley this spring with a demo of an AI agent that independently performs a variety of tasks. These include screening job applicants, planning trips, and analyzing investment portfolios. According to TechCrunch, Manus claimed that its technology outperforms OpenAI’s Deep Research.

The acquisition fits in with Meta Platforms’ broader AI strategy, which is heavily focused on AI as a growth engine. Financial details have not been officially disclosed, but according to sources close to the deal, Meta is paying approximately $2 billion for Manus, an amount that matches the valuation the company was seeking for its next investment round. Earlier, Reuters news agency reported a valuation of between $2 billion and $3 billion.

In April, Manus raised $75 million in a financing round led by Benchmark, valuing the company at approximately $500 million. Shortly before that, Tencent, ZhenFund, and HSG, formerly Sequoia Capital China, among others, had already invested in an earlier round.

It is striking that Manus has already achieved substantial commercial traction as a young company. According to TechCrunch, the platform now has millions of users and has generated more than $100 million in annual recurring revenue. This sets Manus apart from many other AI startups that are still searching for a sustainable revenue model.

Gradual integration of AI agents

Meta has indicated that Manus will continue to operate independently for the time being, while the AI agents will be gradually integrated into products such as Facebook, Instagram, and WhatsApp, where Meta AI is already available. For Meta, Manus is not only a technological asset, but also a rare example of an AI product that demonstrably generates revenue, which is relevant given the tens of billions of dollars the company is investing in AI infrastructure.

The acquisition also has a geopolitical dimension. The founders of Manus are of Chinese origin and founded the parent company Butterfly Effect in Beijing in 2022. The company only moved to Singapore this year. This led to political questions in the United States. Senator John Cornyn from Texas had previously criticized American investments in Chinese AI companies and warned of possible strategic risks.

Meta has told Nikkei Asia that these concerns will be addressed by clear measures following the acquisition. According to the company, no Chinese investors will remain involved in Manus and all activities in China will be terminated. In doing so, Meta aims to remove any regulatory and national security obstacles.

Meta pays $2 billion for Chinese AI startup Manus

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Meta has announced its acquisition of the AI startup Manus, marking a notable instance of a U.S. tech company acquiring a high-tech AI operation with origins in China.

In its announcement, Meta stated that it plans to "operate and sell the Manus service," which is an advanced digital assistant, while also incorporating Manus’s technology into its own offerings, such as the Meta AI chatbot. The financial details of the transaction have not been made public.

Manus is recognized as a leading provider of autonomous general-purpose agents capable of conducting various tasks, including market research, coding, and data analysis. According to Meta, businesses can subscribe to Manus’s agents for as little as $20 per month.

Mark Zuckerberg, Meta’s CEO, is investing billions into rapidly advancing AI technology to compete with major players like OpenAI and Google.

Zuckerberg is on a quest to create what he terms "personal superintelligence," committing resources to AI infrastructure, hiring top talent, and acquiring multiple smaller AI firms.

An early investor in Manus suggested that this acquisition could rank as Meta's third largest, following the company’s purchases of WhatsApp for $19 billion in 2014 and a $15 billion investment for a 49 percent share in Scale AI earlier this year.

Commenting on the deal, Liu Yuan from ZhenFund remarked on WeChat that this marks the arrival of a new generation of young Chinese entrepreneurs. He also noted that Zuckerberg has been a long-time user of Manus's services.

The acquisition of Manus, which employs approximately 100 people worldwide, may raise concerns in both Washington and Beijing, particularly as the competition in AI increasingly strains China-U.S. relations.

Once considered a potential competitor to DeepSeek, Manus’s parent company, Butterfly Effect, successfully secured funding in a round led by U.S. venture capital firm Benchmark this year.

Benchmark and its associates faced scrutiny from U.S. policymakers who argued that their investment could violate regulations prohibiting American firms from supporting Chinese AI initiatives. The Manus team recently moved to Singapore, leading some Chinese media outlets to refer to them as "defectors."

Li Chengdong, founder of the internet think-tank Haitun, stated, “Chinese entrepreneurs focused on building open-source large models and AI applications are among the fastest to evolve and innovate, making them highly competitive.” He added that it’s unfortunate that such a capable company and team are being sold to America, emphasizing that if China does not appreciate talent and entrepreneurial spirit, it will struggle in its technological competition with the U.S.

Alexandr Wang, an AI entrepreneur brought on board by Zuckerberg this summer to spearhead Meta’s AI initiatives, recently mentioned on X that Meta is actively recruiting talent in Singapore, where the Manus team will continue to operate.

Zuckerberg is under increasing scrutiny to demonstrate the return on investment associated with his massive AI expenditures while devising strategies to monetize these technologies for consumers and enterprises, especially the millions of businesses that utilize Meta's platform for advertising purposes.

The company has been looking into offering premium subscriptions for its AI assistant, Meta AI, featuring tasks such as making reservations and creating videos, according to sources familiar with the initiative.

“Joining Meta enables us to establish a more robust and sustainable foundation while preserving Manus's operational model and decision-making processes,” stated Xiao Hong, CEO of Manus, in a press release.

Meta acquires Manus, an AI start-up founded in China.

A sunlit corporate plaza at dawn where two silhouetted executives shake hands in front of a sleek glass building emblazoned with a giant Meta logo. To one side, a single Chinese flag waves gently on its pole. In the foreground on a polished marble pedestal sits a stylized AI chip sculpture etched with glowing neural circuitry, catching the warm golden light of early morning.

Meta buys Chinese-founded AI start-up Manus - Financial Times

- Meta has acquired AI start-up Manus to integrate its technology into its products.  
- Manus offers autonomous agents for tasks like market research and coding, starting at $20/month.  
- The deal may raise tensions in US-China relations amidst the competitive AI landscape.  

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Meta has said it is buying the artificial intelligence start-up Manus, in a rare example of a US technology group scooping up a cutting-edge AI platform with Chinese roots.

In a statement, Meta said that it would “operate and sell the Manus service” — a highly sophisticated digital helper — while integrating its technology into its own products, such as its Meta AI chatbot. Financial terms of the deal were not disclosed.

Manus is one of the “leading autonomous general-purpose agents” and its tools can perform tasks that include “market research, coding and data analysis”, Meta said. Businesses can purchase subscriptions to its agents for as little as $20 a month.

Meta chief Mark Zuckerberg is pouring billions of dollars into the fast-developing technology in an effort to compete with OpenAI and Google.

The Meta chief executive is racing to develop what he dubs “personal superintelligence”, investing in AI infrastructure and hiring top researchers while scooping up several smaller AI start-ups.

An early investor in the Manus team said the deal would rank as Meta’s third largest acquisition after WhatsApp and Scale AI. Meta paid $19bn for WhatsApp in 2014 and up to $15bn for a 49 per cent stake in Scale AI this year.

“The era belonging to this generation of young Chinese entrepreneurs has arrived,” ZhenFund partner Liu Yuan said on WeChat. Liu noted that Zuckerberg has been a longtime Manus user.

The purchase of Manus, which has around 100 staff globally, could raise hackles in Washington and Beijing at a time when the AI race has become a flashpoint in China-US relations.

Once hailed as the next DeepSeek, Manus parent Butterfly Effect this year raised money in a funding round led by US venture firm Benchmark.

Benchmark and its partners came under fire from China hawks in Washington, who argued that the deal flouted rules banning American groups from investing in Chinese AI. The Manus team, meanwhile, relocated to Singapore, prompting some Chinese media to label the company “defectors”.

“In this AI wave Chinese entrepreneurs building open-source large models or AI applications have been iterating the fastest and are highly competitive,” said Li Chengdong, founder of Haitun internet think-tank.

“An incredible company and team are being sold to the United States,” he said. “If [China] doesn’t value talent and entrepreneurs, and [doesn’t] respect the basic rules of capital, it will ultimately be very hard [for the country] to win the China-US tech war.”

AI entrepreneur Alexandr Wang, hired by Zuckerberg this summer to lead Meta’s AI efforts, said on X that Meta was also recruiting more widely in Singapore, where the Manus team will remain based.

Zuckerberg is facing increasing pressure to justify his gargantuan AI spending and find ways to monetise the technology with consumers or enterprises, including the millions of businesses that use the platform for advertising.

The company has been exploring trialling premium subscriptions for its AI assistant Meta AI, for tasks such as booking reservations and video creation, according to people familiar with the matter.

“Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” said Xiao Hong, chief executive of Manus, in a statement.

Meta buys Chinese-founded AI start-up Manus

Meta has announced its decision to acquire Manus, an AI startup based in Singapore. Following this acquisition, Manus will completely sever ties with Chinese ownership and operations within China, marking a significant shift in its corporate structure. This move reflects Meta's ongoing commitment to expanding its capabilities in artificial intelligence while navigating the complexities of international business dynamics.

Meta announces AI startup Manus will sever ties with China following acquisition.

In a dark, shadowy control room, a robotic arm labeled “Manus” slices a glowing crimson cable linked to a steel silhouette of China bearing its flag; above, an imposing Meta logo looms as sparks fly and long shadows dramatize the severing of ties.

Meta says AI startup Manus to cut China ties after acquisition - Nikkei Asia

- Meta announced its acquisition of AI startup Manus, based in Singapore.  
- The deal will eliminate any Chinese ownership of Manus and its operations in China.  
- This move highlights Meta's ongoing investment in artificial intelligence technologies and capabilities.  

PALO ALTO, California/HONG KONG -- Meta says it will acquire AI startup Manus and that the Singapore-based company will no longer have any Chinese ownership or operations in China after the deal.

Meta says AI startup Manus to cut China ties after acquisition

On December 29, 2025, Meta announced its plans to acquire Manus, a startup specializing in artificial intelligence, with the intention of integrating its AI technology into various platforms, including Meta AI. The financial details of the transaction have not been publicly disclosed.

Manus is a subsidiary of Beijing Butterfly Effect Technology, located in Singapore, and has developed software designed to function as a "digital employee," capable of performing tasks such as research and automation with minimal user input. Earlier this year, Bloomberg News reported that Manus achieved an annual revenue run rate of $125 million generated from subscription-based sales to businesses.

The acquisition reflects a broader trend among major technology companies to develop and promote "AI agents"—advanced programs capable of executing multi-step tasks with limited guidance, transitioning from mere demonstrations to viable tools for users and organizations willing to invest.

Meta plans to not only operate the Manus service but also market it alongside its existing consumer and enterprise offerings, including its Meta AI products. As the competitive landscape in AI develops, securing Manus could enable Meta to accelerate its journey toward monetization by tapping into Manus's subscription model.

The general-purpose AI agent created by Manus is designed to work autonomously from basic instructions or queries, guiding the AI's outputs with ease. The startup released its AI agent earlier this year, claiming its capabilities outperformed those of OpenAI's DeepResearch. Manus has also actively showcased its technology by completing numerous tasks for users on the social media platform X at no charge.

Alexandr Wang, who transitioned to Meta following his leadership role at data-labeling company Scale AI, expressed his enthusiasm about the acquisition on X, stating, “Excited to announce that @ManusAI has joined Meta to help us build amazing AI products!” 

The Information referred to Manus as a front-runner in the launch of general-purpose AI agents earlier this year. 

As competition in the AI sector sharpens, Meta has been increasing its investment in artificial intelligence through strategic acquisitions and the recruitment of top talent. Earlier in the year, it made a significant investment in Scale AI, valuing the company at $29 billion and facilitating Wang's move to Meta.

The addition of Manus to Meta’s portfolio underscores the company’s efforts to incorporate sophisticated AI capabilities into its offerings while exploring innovative avenues for monetizing the substantial investments in AI technology and infrastructure it has made.

Meta acquires Manus AI agent startup in its pursuit of marketing "digital employees."

A bright, sunlit Meta campus lobby with a giant Meta logo on a glass wall. In the foreground, a professional in business attire hands a sleek “Manus AI” data chip to a semi-transparent, humanoid digital avatar stepping out of a polished kiosk. Around them, other AI “employees” at modern workstations collaborate with human staff in warm natural light, hinting at the rise of Meta’s new digital workforce.

Meta snaps up Manus AI agent startup as it races to sell “digital employees” - ts2.tech

- Meta is acquiring Manus, an AI startup, to enhance its product offerings.  
- Manus generates $125 million annually through AI subscription services for businesses.  
- The acquisition supports Meta's strategy to monetize AI-driven products and services.  

NEW YORK, December 29, 2025, 19:43 ET

Meta said it will acquire Manus and integrate the AI agent into products including Meta AI; financial terms were not disclosed.

Manus, a Singapore-based unit of Beijing Butterfly Effect Technology, builds software that can carry out research and automation with minimal prompts.

Bloomberg News reported Manus had an annual revenue run rate of $125 million earlier this year from subscription sales to businesses.

Meta Platforms said on Monday it would acquire Manus, a Chinese artificial intelligence startup whose software can operate as a “digital employee” for tasks such as research and automation. Reuters

The deal lands as Big Tech pushes “AI agents” — programs that can carry out multi-step work with limited direction — from demonstrations into tools that people and companies will pay to use.

Meta said it will operate and sell the Manus service and integrate it into its consumer and business products, including Meta AI.

Financial terms of the deal were not released, Meta said.

Bloomberg News reported the acquisition could give Meta a faster path to paid services, because Manus sells its AI agent to businesses via subscriptions. Bloomberg reported Manus had an annual revenue run rate of $125 million earlier this year. Bloomberg

Manus is based in Singapore and is part of Beijing Butterfly Effect Technology Ltd Co, Reuters reported.

The startup’s general-purpose AI agent can perform tasks independently with minimal prompts — a brief instruction or question that guides an AI system’s output.

Manus launched its AI agent earlier this year and said its performance surpassed OpenAI’s DeepResearch, Reuters reported. It has promoted the product by completing dozens of tasks for users on X for free, the report said.

Alexandr Wang, who joined Meta after leading data-labeling startup Scale AI, wrote in a post on X: “Excited to announce that @ManusAI has joined Meta to help us build amazing AI products!” X

The Information described Manus as one of the pioneers among startups that launched general-purpose AI agents earlier this year. Theinformation

Meta has been ramping up AI investments through strategic acquisitions and talent hires as competition in the sector intensifies, Reuters reported.

Earlier this year, the Facebook owner invested in Scale AI in a deal valuing the data-labeling startup at $29 billion and bringing in Wang, Reuters said.

The Manus deal adds to Meta’s push to fold advanced AI features into its platforms as it seeks new ways to monetize a costly buildout of models, computing power and AI-driven products.

Meta snaps up Manus AI agent startup as it races to sell “digital employees”

Meta has announced its intention to acquire the AI company Manus, which originated in China, to integrate its innovative “general agent” technology into its diverse suite of products.

Launched in March 2025, Manus has positioned itself as a significant advancement beyond traditional generative AI chatbots, which are primarily designed for summarizing texts and responding to queries. Instead, Manus offers capabilities that allow for extensive research and context-aware reasoning, resulting in actionable insights tailored to specific user needs.

For example, Manus can be utilized to assess job applications contained in a .ZIP file. Users can prompt the technology to analyze the applications based on criteria they define, ultimately generating a document that ranks candidates according to their suitability for the position. This operation occurs within Manus's cloud-based virtual machine, described as a multi-agent system functioning on various models.

The company was developed by the Chinese firm Butterfly Effect, which has recently shifted its headquarters from Hong Kong to Singapore. Remarkably, just eight months post-launch, Manus reported an annual recurring revenue of $100 million.

Meta's announcement emphasized Manus’s widespread impact, stating that it currently addresses the daily needs of millions of users and businesses globally. Furthermore, the team from Manus will be integrated into Meta, although the financial terms of the acquisition remain undisclosed.

Manus views the acquisition as a testament to its groundbreaking efforts in the realm of General AI Agents. In their announcement, Manus highlighted the value their service brings to users and expressed hope for expanding its subscription reach to millions of businesses and billions of users on Meta's platforms. CEO Xiao Hong stated that joining Meta provides an opportunity to establish a more robust and sustainable platform without altering Manus's operational protocols or decision-making processes.

Mark Zuckerberg, Meta’s CEO, aims to develop a “superintelligence” service that deeply understands users, aligns with their goals, and facilitates their achievements. To realize this vision, Meta has allocated at least $70 billion for capital expenditures in 2025, with plans for additional spending in the following year, primarily focused on building data centers for AI applications. While Meta recognizes AI's contribution to boosting advertising revenues, it does not yet offer a paid AI service but is testing a subscription model referred to as “Meta AI+.”

The acquisition of Manus aligns with Meta’s strategy and likely complements its pending subscription offering while advancing the quest for superintelligence.

This marks Meta’s fifth acquisition in the AI sector this year, following the purchases of startups like PlayAI and WaveForms, as well as Rivos, a developer of accelerators, and Limitless, a creator of wearable technologies. Additionally, Meta has been proactive in attracting top AI talent with offers of substantial compensation packages.

In a recent update, it was reported by Nikkei that Manus plans to cut ties with Chinese investors and will cease operations in China moving forward.

Zuck acquires Chinese AI firm Manus.

A modern, sunlit boardroom with tall glass windows. Mark Zuckerberg stands at a polished conference table, reaching out to shake hands with a sleek robotic arm labeled “Manus AI.” Behind them, a large Meta logo dominates the wall, while a small Chinese flag sits on the table beside a signed acquisition contract. Natural light streams in, casting warm highlights across the scene.

Zuck buys Chinese AI company Manus that claims it deals in actions, not words - theregister.com

- Meta will acquire AI company Manus to enhance its general agent technology across products.  
- Manus provides advanced reasoning capabilities to offer actionable results from diverse data sources.  
- The acquisition aligns with Meta's vision of developing a superintelligence service for users.

UPDATED Meta will acquire made-in-China AI outfit Manus and harness its “general agent” technology across its products.

Manus debuted in March 2025 and immediately pitched itself as a leap beyond generative AI chatbots, which it characterizes as best suited to summarizing information and answering questions.

The outfit promotes its own services as enabling “wide research and context-aware reasoning to produce actionable results in the format you need.”

To illustrate that promise, Manus offers a scenario in which users ask its tech to select the best candidate for an job by evaluating job applications stored in a .ZIP file. Manus can open that archive, read the files it contains, evaluate them according to user-defined criteria, then produce a document that ranks candidates by suitability for the role.

The service does that in its own “computer” – a cloud-hosted VM – that Manus says “operates as a multi-agent system powered by several distinct models.”

Manus was created by a Chinese company called Butterfly Effect, which also operates an entity in Hong Kong an recently moved its headquarters to Singapore. The outfit recently claimed to have $100 million annual recurring revenue just eight months after launch.

Meta’s announcement of the deal states: “Manus is already serving the daily needs of millions of users and businesses worldwide” and reveals the made-in-China company’s staff will join the social networking giant. The value of the deal was not disclosed.

Manus hailed its acquisition as “validation of our pioneering work with General AI Agents.”

“Our solution is driving value for millions of users worldwide today. With time, we hope to expand this subscription to the millions of businesses and billions of people on Meta’s platforms,” Manus’s post states, before adding a canned quote from CEO Xiao Hong who said joining the Zuckosphere represents a chance to “build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made.”

“We’re excited about what the future holds with Meta and Manus working together and we will continue to iterate the product and serve users that have defined Manus from the beginning.”

Meta boss-for-life Mark Zuckerberg wants to build a “superintelligence” service, which he defines as software “that knows us deeply, understands our goals, and can help us achieve them.”

In pursuit of that goal, Meta has committed to at least $70 billion of capital expenditure in 2025 and expects to spend more next year, much of it going towards building datacenters to host AI workloads. While the company credits AI with helping it to improve advertising revenue, Meta does not currently offer a paid AI service but is reportedly testing a subscription product called “Meta AI+”.

Manus seems a good fit for that offering, and perhaps also a step towards superintelligence.

The deal is the fifth AI-related acquisition Meta has made in 2025, following its purchases of AI startups PlayAI and WaveForms, accelerator developer Rivos, and wearable device developer Limitless. The social networking giant has also dangled eight-figure compensation packages to lure top AI talent to the company. ®

UPDATED AT 04:00 UTC December 30

to note a report from Nikkei in which Meta said Manus will sever ties to Chinese investors and will not operate in China.

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