Manus AI, a Chinese-founded artificial intelligence startup, is being acquired by Meta in a deal reportedly worth more than $2 billion (31/12). The acquisition highlights the startup’s rise as a leading developer of autonomous, general-purpose AI agents.

Founded in China and relocated to Singapore in mid-2025, Manus first gained attention in March when it launched an AI agent capable of performing complex tasks independently. The system can handle résumé screening, stock analysis, and other operations without constant human supervision.

What Manus AI Can Do

Manus was developed by Chinese AI product studio Butterfly Effect and described as the world’s first “general” AI agent. Since its debut, the startup has expanded the agent’s capabilities to include market research, coding, data analysis, design work, slide creation, and task execution directly through a web browser.

Early tests by Business Insider in March found Manus ambitious but uneven, including occasional instances of hallucinated data. Despite this, the startup reported surpassing $100 million in annual recurring revenue, with a total revenue run rate exceeding $125 million.

Growth, Funding, and Global Presence

In April, Manus raised $75 million in funding led by Benchmark at a valuation of about $500 million, Bloomberg reported. The company now employs roughly 105 staff across Singapore, Tokyo, and San Francisco and has announced plans to open a Paris office.

Founders and Leadership

Xiao Hong, also known as “Red” in China’s tech circles, founded Manus and serves as CEO of Butterfly Effect. Born in 1992, Xiao studied software engineering at Huazhong University of Science and Technology. Previously, he founded Nightingale Technology in 2015, where he developed enterprise productivity tools, including the Yi Ban assistant for WeChat.

In 2022, Xiao launched Butterfly Effect and introduced Monica, a browser-based AI extension aggregating multiple large language models. After the acquisition, Xiao will assume a vice president role at Meta.

Co-founder Ji Yichao, or “Peak Ji,” leads technical and infrastructure development. He was the public face of Manus at launch and was named to MIT Technology Review’s Innovators Under 35 list. The founding team also includes Zhang Tao, head of product, who formerly held senior product roles at ByteDance and Tencent.

Meta Acquisition and China-Related Considerations

Meta said the purchase aims to scale general-purpose AI agents across its platforms while keeping Manus as a stand-alone product. Manus confirmed that the acquisition would not disrupt its customers and that it would continue operating its subscription service from Singapore.

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

Manus’s links to China have drawn scrutiny. In May, US Senator John Cornyn questioned American investment in AI companies with Chinese connections. Meta said the acquisition will fully sever Manus’s remaining ties to China.

“There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China,” a Meta spokesperson said, adding that employees joining Meta will not have access to customer data.

This article is based on original reports from Business Insider, titled What is Manus, the Chinese-founded AI startup Meta is buying for over $2 billion?, published on 31/12/2025.

PHOTO: NIKKEI ASIA

This article was created with AI assistance.