According to CNBC, Meta announced Tuesday it has acquired Manus, a Singapore-based developer of general-purpose AI agents. The startup, which originally began as a product of Chinese company Butterfly Effect, launched its first AI agent earlier this year and claims it achieved an annualized average revenue over $100 million within just eight months, with a current run rate exceeding $125 million. Manus, which raised $75 million in a Series B round led by Benchmark in April, laid off most of its Beijing staff in July after moving its headquarters to Singapore in June. Meta stated the acquisition aims to accelerate AI innovation and integrate Manus’s automation into products like Meta AI, and Manus CEO Xiao Hong said the company will continue operating its subscription service without disruption.
Meta’s AI Shopping Spree Continues
So, here’s the thing: this is classic Meta in 2024. They’re throwing absolute mountains of cash at the AI problem, acquiring talent and technology at a dizzying pace. Buying Manus isn’t just about getting another chatbot; it’s a direct play for “AI agents” that can actually do things—market research, coding, data analysis. That’s the holy grail beyond simple conversation, and Meta is desperate to embed it everywhere. They want this tech in their business tools, their consumer apps, you name it. It’s an aggressive, expensive bet to try and catch up and maybe leapfrog the likes of OpenAI and Google in the practical application of AI.
revenue-number-is-wild”>That Revenue Number Is Wild
But let’s talk about that claimed revenue. A $125 million run rate just eight months after launch? That’s an astronomical figure for a new AI product in a crowded field. It immediately raises questions. What’s the actual revenue model? How many of those “millions of users” are paying substantial subscriptions? Is this revenue sustainable, or was it driven by a viral, early-adopter surge that might plateau? Meta clearly saw enough to write a big check, but in the hype-filled AI world, staggering growth claims deserve a healthy dose of skepticism. You have to wonder what the real, post-acquisition growth trajectory looks like.
The China Pivot Adds Complexity
Now, the backstory here is crucial. Manus didn’t start in Singapore. It began as a product of a Chinese startup, and its rapid pivot westward, complete with laying off Beijing staff and scrubbing its Chinese social media, tells its own story. It’s a tale of geopolitical maneuvering. With backing from Tencent and former Sequoia China (HongShan), and a partnership with Alibaba’s AI team, Manus had deep roots in the Chinese tech ecosystem. For Meta, a company whose core apps are banned in China, this acquisition is… interesting. It brings in tech and talent with strong Chinese connections, which is a layer of strategic and potential regulatory complexity that won’t be simple to manage.
What Happens Next?
The promise, according to Manus’s own announcement, is that nothing changes for users and that they’ll operate independently. I’m skeptical. How often do we hear that after an acquisition? Meta didn’t buy this company to just let it be. The pressure to integrate, to leverage that “advanced automation” across the entire Meta empire, will be immense. The real test is whether the magic sauce that supposedly drove that explosive early growth can survive inside a tech giant. Often, it doesn’t. The talent gets assimilated, the product gets roadmapped into oblivion, and the hype fades. Meta needs this to work to justify its spending spree, but history is littered with expensive AI acquisitions that never quite delivered on their initial promise.
