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International Business Times UK
International Business Times UK
Tanmay Puri

Meta Buys AI Company Manus Worth $500 Million — Here's Why

What is Manus? Inside the AI agent startup valued at nearly £400 million bought by Meta. (Credit: Pexels)

Meta is about to get a massive AI upgrade as Meta Platforms has just announced its acquisition of Manus, an AI startup that has made a name for itself in the field of autonomous artificial intelligence agents very fast.

The huge deal comes especially when big tech companies are rushing to get a super advanced AI arsenal to stay competitive in a very contentious AI war that is ongoing. Although the exact financial terms of the transaction have not been officially disclosed yet, a recent funding round valued Manus at approximately $500 million (around £395 million), proving the startup's insane ascent in the sector and providing context for why Meta moved so fast to bring it into its fold.

What Manus Is and What It Does

Now, for those unaware, Manus was established as a Singapore-based company with roots in China, where its parent organisation, Beijing Butterfly Effect Technology, originally developed advanced AI technologies.

The company's main product is an autonomous AI agent, made to operate more like a digital employee than a traditional chatbot like ChatGPT. So, unlike normal conversational models that react to prompts, Manus's agent can plan, execute and complete complicated tasks independently with minimal direction from users. Tasks can be anything from research and data analysis to document preparation, scheduling and workflow automation, hence, giving businesses and individual users a very useful tool to carry out multi step work without constant intervention.

Moreover, in practical terms, this means Manus's AI can synthesise information from different sources, assemble reports, screen resumes, analyse financial data and even create prototypes for websites and applications. So, these autonomous agents operate asynchronously in the cloud, allowing them to work even when users are offline. Reportedly, Manus has demonstrated its capabilities publicly, getting attention on social platforms like X by completing a lot of real world tasks in live demonstrations.

When it comes to valuation and net worth, the picture is more complicated than the simple $500 million figure (around £395 million), which is the popular figure available out there. This valuation was given to Manus in a funding round led by Benchmark Capital earlier in 2025, showing investor confidence in the startup's potential.

However, sources say that negotiations with Meta may have valued the company higher at some stages of sale discussions, possibly getting to the billion dollar figure before the acquisition was agreed. Independent reports bring it up to a rumoured $2 billion (which is around £1.6 billion), though none of these have been officially confirmed by Meta or Manus.

Furthermore, Manus's growth metrics also tell a story far above valuation. Within eight months of launching its first agent product in early 2025, the company reportedly achieved more than $100 million (£79 million) in annual recurring revenue and reached a total revenue run rate exceeding $125 million (£99 million). Such performance is really rare for an AI agent startup and points to both the commercial viability and giant adoption of its technology.

Read More: A $555,000 Job Is Up in OpenAI as Sam Altman Looks to Hire an AI Tech Expert - Here's How to Apply

Read More: 'Need Help From Robots' — Why Donald Trump is Trying To Employ Artificial Intelligence in the US

Why Meta Bought Manus and What It Means

Meta's decision to buy Manus forms part of their big grand mission into artificial intelligence that has defined much of the company's recent direction and decisions. Under the leadership of CEO Mark Zuckerberg, Meta has been investing a whole lot of money in AI research and products planned for integrating advanced capabilities across its suite of platforms, including Meta AI, Facebook, Instagram, WhatsApp and Oculus devices.

Moreover, previous high profile decisions, such as a massive investment in Scale AI and the creation of Meta Superintelligence Labs, show a long term plan to stay competitive with rivals such as OpenAI and Google.

According to the Manus CEO,

'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, CEO of Manus. '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.'

Furthermore, by bringing Manus into the Meta ecosystem, the company gains not just a piece of brand new technology, but also a team and product that already generate revenue and serve millions of users and businesses globally.

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