The acquisition of Manus by Meta was officially reported by major news outlets on December 29, 2025, or December 30, 2025 1. Meta itself issued a statement on Monday, December 29, 2025, confirming the acquisition 4. This move signifies a critical step in Meta's strategic push to accelerate its AI ambitions and integrate advanced AI across its platforms, bolstering its AI agent capabilities and aiding its transition from a social media giant to a leader in general-purpose AI 6.
The acquisition also intensifies Meta's aggressive competition in the AI race against rivals such as OpenAI, Microsoft, and Alphabet's Google, marking its fifth AI-related acquisition in 2025 1. Manus, an AI agent startup, quickly gained prominence by developing a general AI agent capable of executing multi-step tasks end-to-end, differentiating itself from conventional generative AI chatbots 1. It achieved approximately $100 million in annual recurring revenue within eight months of entering the market in March 2025, highlighting its rapid growth and technological prowess 1.
Meta officially announced its acquisition of Manus, an AI agent startup, with major news outlets reporting the event on December 29, 2025, or December 30, 2025 1. Meta confirmed the acquisition in a statement issued on Monday, December 29, 2025 4.
The financial terms of the acquisition were not disclosed by either Meta or Manus 1. However, some financial figures related to Manus and its parent company were reported. Manus had an annual revenue run rate of US$125 million (S$160.7 million) earlier in 2025 2. Its Chinese parent company, Beijing Butterfly Effect Technology, reportedly raised funds earlier in 2025 at a valuation close to US$500 million 2. One report suggested Manus was raising funds at a $2 billion valuation and was acquired for "billions of dollars," though official statements withheld specific transaction details 8.
The acquisition was driven by strategic rationales from both Meta and Manus:
Meta's Strategic Rationales:
Manus's Strategic Rationales:
Meta's acquisition of Manus signifies a pivotal alignment with its overarching strategic vision to establish leadership in the general-purpose AI domain, extending beyond its traditional social media roots 7. This strategic move underscores Mark Zuckerberg's long-term ambition to develop AI systems capable of assisting users with complex objectives, rather than merely responding to prompts 1. The integration of Manus's advanced AI agent technology, which excels at executing multi-step tasks end-to-end, is crucial for Meta's expansion into future platforms like the metaverse and the development of sophisticated VR/AR technologies, including AI-powered glasses 1.
The detailed integration plan anticipates that Manus's multi-step task execution and autonomous agent capabilities, which can handle file operations, run code, and coordinate multiple AI models 1, will be seamlessly woven into Meta's core product ecosystem. This includes Meta AI, Facebook, Instagram, and WhatsApp, alongside emerging platforms like AI glasses 1. Manus's demonstrated ability to process over 147 trillion tokens and create more than 80 million virtual computing environments highlights its potential to significantly enhance Meta's AI offerings 1. For instance, its technology could empower Meta AI to screen job applicants by analyzing CVs or create detailed trip itineraries 1.
Regarding Manus's existing subscription services and user base, the company is expected to continue its operations, with its technology gradually being integrated into Meta's broader AI stack 1. Manus CEO Xiao Hong emphasized that the acquisition would provide the company with access to Meta's vast scale and infrastructure, allowing it to build "at a scale [it] never could have imagined" 1. While benefiting from Meta's resources, Manus aims to retain operational independence 1. This dual approach may also serve to mitigate potential regulatory scrutiny by maintaining Manus's distinct operational integrity 7.
From a financial perspective, while the official terms of the acquisition were not disclosed by either Meta or Manus 1, publicly reported figures shed light on Manus's value. Manus itself had an annual revenue run rate of US$125 million (S$160.7 million) earlier in 2025 2. Furthermore, its Chinese parent company, Beijing Butterfly Effect Technology, raised funds at a valuation approaching US$500 million in the same year 2. Despite one report mentioning Manus raising funds at a $2 billion valuation and an acquisition for "billions of dollars" 8, the consistent official statement remains that financial terms were not disclosed. This underscores the strategic rather than purely immediate financial valuation Meta places on this acquisition, prioritizing its long-term AI ambitions.
This acquisition is a clear manifestation of Meta's aggressive competitive strategy in the intense AI race against formidable rivals such as OpenAI, Microsoft, and Alphabet's Google 2. As Meta's fifth AI-related acquisition in 2025 1, it highlights the company's commitment to substantial investments in AI infrastructure, including tens of billions of dollars for data-center expansion 1. By integrating Manus's capabilities, Meta aims to accelerate its AI ambitions, reinforce its position as a leader in general-purpose AI, and potentially secure a more immediate return on its massive AI investments 2.
Meta Platforms Inc.'s acquisition of the Singapore-based artificial intelligence (AI) startup Manus in late December 2025 has generated considerable discussion among financial analysts, tech journalists, and industry experts . The move is widely seen as a significant strategic play by Meta to bolster its AI capabilities, secure direct revenue streams, and intensify its competition with other tech giants in the rapidly evolving AI landscape .
Experts largely view the acquisition as a critical step in Meta's accelerated AI-first strategy, championed by CEO Mark Zuckerberg . Optimistic forecasts highlight Manus's capability as a "general AI agent" capable of independently executing complex real-world tasks such as screening resumes and generating software applications, which directly enhances Meta's AI strategy . Furthermore, Manus's subscription service for businesses, boasting an annual revenue run rate of $125 million, provides Meta with immediate subscription income, addressing investor skepticism about the return on its massive AI investments and helping shift Meta from an investment to a return phase . Meta plans extensive product integration across its ecosystem, including Meta AI, Facebook, Instagram, WhatsApp, and smart glasses, expecting to enhance automation and reduce operational costs . The acquisition also strategically brings in key talent, including Manus founder Xiao Hong, who will serve as Meta's Vice President . This move aligns with a broader industry trend of accelerating M&A activity in late 2025 and into 2026, driven by the demand for AI capabilities .
Despite the positive outlook, analysts and experts have raised specific concerns and identified challenges. Meta is undertaking unprecedented capital expenditures for AI infrastructure, with projections of $60-65 billion for 2025 alone, leading to investor questions regarding the sustainability of its CapEx and tangible ROI, especially as Meta has not pointed to direct AI revenue comparable to Microsoft's reported $13 billion . There is also a perception among some experts that Meta is "lagging in AI" compared to rivals like OpenAI and Google . Meta's AI strategy has also been described as "scattershot" and contradictory, with internal confusion surrounding a new frontier AI model, codenamed "Avocado," which could be proprietary, potentially marking a shift away from its previous open-source approach with Llama 9. Regulatory scrutiny is another concern, as Manus's parent company was founded in China, and a prior funding round drew criticism and review from the U.S. Treasury Department due to restrictions on investments in Chinese AI companies . Delays in the launch of Meta's largest model, Llama 4 "Behemoth," have also sparked concerns about the company hitting a "scaling wall" in AI development 10.
The acquisition intensifies Meta's position in the fierce AI race against tech giants such as OpenAI, Microsoft, Google, and Anthropic 11. While Meta has historically championed open-source AI with Llama, the potential shift to proprietary models like "Avocado" signals an adjustment to better compete with closed-source offerings 9. Meta's strengths lie in its massive user base across Facebook, Instagram, and WhatsApp for real-world testing, along with significant investment in AR/VR hardware that will demand on-device AI integration 12.
Pre-acquisition, investor sentiment was largely bullish, with approximately 90% of analysts remaining bullish on Meta Platforms as of December 2025 13. Rosenblatt Securities and Bank of America reiterated "Buy" ratings with high price targets, citing Meta's expense guidance and planned LLM launches as catalysts . Post-acquisition, sentiment has been mixed; while Baird analyst Colin Sebastian noted Meta as a "battleground" stock with risks and opportunities, he suggested that "embedded expectations are in better balance" 14. The integration of Manus's revenue streams is expected to mitigate some of the ROI concerns that contributed to the stock's consolidation after reaching an all-time high in August 2025 . Analysts predict that M&A momentum, driven by the need for AI capabilities, will accelerate into 2026, positioning Meta's Manus acquisition within a broader trend of high-value, AI-focused transactions .