In a move that underscores the intense competition in the global AI landscape, Meta Platforms has confirmed its acquisition of Manus, the Singapore-based AI startup that has been the talk of the tech world. The deal is valued at an impressive $2 billion, cementing Manus’s position as one of the fastest-growing companies in the sector.
From Viral Demo to $100M ARR
Manus exploded onto the scene just eight months ago with a viral demo video showcasing an AI agent capable of complex tasks like screening job candidates, planning vacations, and analyzing stock portfolios. The company claimed its technology outperformed existing models from industry giants like OpenAI.
This bold entrance quickly attracted top-tier investors. Within weeks of its launch, Manus secured a $75 million funding round led by Benchmark at a $500 million valuation. Earlier backers reportedly included prominent names like Tencent, ZhenFund, and HSG.
Despite some initial skepticism over its aggressive subscription pricing of $39 to $199 per month, Manus successfully converted hype into revenue, recently announcing it had surpassed $100 million in annual recurring revenue (ARR) from millions of users.
Meta’s Strategic Play for Profitable AI
For Mark Zuckerberg, the acquisition represents a strategic win. While Meta has invested over $60 billion in AI infrastructure, investors have grown anxious about the path to monetization. Manus provides an immediate answer: a proven, revenue-generating AI product with a massive user base.
Meta plans to operate Manus as an independent entity while integrating its advanced agent technology across its family of apps, including Facebook, Instagram, and WhatsApp. This will significantly enhance the capabilities of its existing Meta AI chatbot and provide new functionalities to billions of users.
Navigating Geopolitical Tensions
The deal is not without its complexities. Manus was founded by Chinese entrepreneurs who initially established its parent company, Butterfly Effect, in Beijing before relocating to Singapore. This background has already drawn scrutiny from U.S. lawmakers concerned about Chinese influence in critical technologies.
To address these concerns, Meta has proactively stated that the post-acquisition entity will have no ties to its former Chinese investors and will cease all operations in China. A spokesperson confirmed, “There will be no continuing Chinese ownership interests in Manus AI following the transaction.”
Implications for the MENA Tech Scene
This landmark acquisition sends powerful signals to the MENA startup ecosystem. The $2 billion valuation for an eight-month-old company highlights the immense value being placed on innovative and commercially viable AI solutions, potentially encouraging greater venture capital investment into AI startups across the region.
Furthermore, the geopolitical issues surrounding Manus serve as a crucial case study for MENA founders. As startups in the Gulf and beyond seek global scale and attract international capital, navigating the complex dynamics between major economic powers like the U.S. and China will become an increasingly important part of their strategic planning.
About Manus
Manus is a Singapore-based artificial intelligence company that develops a general-purpose AI agent designed to function as a digital employee. The agent can complete a wide range of tasks, including research, automation, and analysis, with minimal human prompting. Launched in 2025, the company achieved rapid growth and significant revenue through a direct-to-consumer subscription model.
About Meta Platforms
Meta Platforms, Inc. builds technologies that help people connect, find communities, and grow businesses. The company’s products include Facebook, Instagram, Messenger, WhatsApp, and Meta Quest. Meta is heavily invested in developing the next generation of computing platforms, with a significant focus on artificial intelligence and the metaverse.
Source: [TechCrunch](https://techcrunch.com/2025/12/29/meta-just-bought-manus-an-ai-startup-everyone-has-been-talking-about/)
