Meta buys another AI startup and promises to cut all ties with China

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Meta has once again opened its very large checkbook and bought another AI startup, apparently believing the fastest way to build the future is to acquire it outright.

This time, the company is picking up Manus, a fast-rising AI agent startup now based in Singapore, in a deal reportedly worth more than $2 billion, according to the Wall Street Journal.

The acquisition is the latest sign that Meta is done playing defense in the AI race.

The company has already committed billions to AI infrastructure and invested in or acquired other startups like Scale AI and Limitless.

The buying spree sends a clear message: Meta wants AI yesterday and isn’t convinced its internal teams can ship fast enough on their own.

Manus made headlines earlier this year when it launched as a general-purpose AI agent that could do just about everything short of walking your dog, including deep research, trip planning, coding, and even stock analysis.

Eight months later, the startup claimed it had already hit $100 million in annual recurring revenue, a number that tends to make Big Tech executives sit up straighter.

In a statement, Manus CEO Xiao Hong said joining Meta would give the company a stronger foundation without changing how it operates. 

Meta says Manus will continue running as its own service, with its tech gradually folded into Meta’s sprawling product lineup.

But this deal comes with a geopolitical footnote in bold. 

Manus was created by its parent company, Butterfly Effect, which previously operated out of Beijing and Wuhan before relocating its headquarters to Singapore. 

Those Chinese roots have already caused trouble. 

Earlier this year, US lawmakers criticized Benchmark for investing in Manus, with Senator John Cornyn publicly questioning why American capital should support AI development tied to China.

Meta appears eager to avoid that headache. The company says Manus will fully sever ties with China after the deal closes, including shutting down operations there. 

A Meta spokesperson told Gizmodo that there will be no remaining Chinese ownership interests.

According to Nikkei Asia, Manus has already laid off most of its China-based staff and now operates with about 105 employees spread across Singapore, Tokyo, and San Francisco.