Meta Buys AI Startup Manus, Adding Millions of Paying Users

Meta Buys AI Startup Manus, Adding Millions of Paying Users
Source: The Wall Street Journal

Meta Platforms has acquired AI startup Manus, a Singapore-based company with Chinese founders that conducts deep research and performs other tasks for paying users.

The terms of the deal weren't disclosed. The acquisition is among the highest-profile examples of a major U.S. tech company buying an AI model developed in Asia's AI and startup ecosystem.

Manus gained a wide following after previewing an AI model in March that was capable of producing detailed research reports and building custom websites. That demo followed the release of DeepSeek, a made-in-China AI model that rocked Silicon Valley due to its advanced capabilities, coupled with claims by its founder that it was developed with far less computing power than American rivals.

Manus has garnered millions of users since its spring launch, including some who pay subscriptions to use its models for analysis, coding and other tasks.

The deal is a move in a new direction for Meta, which says it plans to continue to operate and sell Manus's service and integrate it into its suite of social media products. Meta has previously touted so-called "open source" models that are largely free to access, modify or distribute.

"We plan to scale this service to many more businesses," Meta said in its announcement about the deal.

Meta's existing AI offerings are widely available for free in services including Instagram and WhatsApp, and the company has also fully incorporated AI into its advertising in ways that have fattened its bottom line, according to analysts.

After Meta faced unexpected challenges earlier this year while preparing to roll out a new model, Chief Executive Mark Zuckerberg went on a recruiting blitz to build an AI dream team, offering top executives and researchers multimillion-dollar paydays.

The company acquired a 49% stake in startup Scale AI that valued Scale at $29 billion, and Scale founder Alexandr Wang joined the social media giant as its chief AI officer.

The Manus acquisition appears to be Meta's first major purchase of an AI startup operating an frontier AI model. Manus's capabilities are regularly tested by top benchmarks and compared against those of AI models including OpenAI's ChatGPT, Anthropic's Claude, Google's Gemini and DeepSeek's R1.

Earlier this year, Manus raised $75 million in a fundraising round led by venture firm Benchmark. As part of the deal, Benchmark's general partner Chetan Puttagunta joined the company's board.

In December, the startup announced it had crossed $100 million in annual recurring revenue, eight months after it launched.

"Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," Xiao Hong, chief executive of Manus, said in an announcement Monday. Xiao is one of two Chinese co-founders of the company.