Latent Space AI Meta Acquires Manus AI from China ($2B Deal)
Jan 1, 2026
Meta's bold $2 billion acquisition of Manus AI sends shockwaves through the tech world, signaling a strategic AI pivot. The deal brings in cutting-edge diffusion innovations and aims to enhance Meta's offerings across its platforms. Despite concerns over Manus's origins and U.S. export controls, Meta plans to keep the company independent while cutting ties with China. With a viral product and significant revenue, Manus's future integration into Meta promises to unlock exciting developments in AI. Investors are optimistic about the implications of this landmark acquisition.
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Meta Fills An Agent-Tech Gap
- Meta bought Manus AI for its agent tech that can control user screens and perform tasks autonomously.
- The acquisition fills a gap for Meta in the agent/automation space and signals competitive intent.
From Beijing Startup To Rapid Growth
- Manus launched in 2022 as Butterfly Effect in Beijing and later moved to Singapore in 2025 while raising U.S. venture funding.
- It raised $75M at a $500M valuation and quickly grew to millions of users and >$100M ARR.
Meta Paid The Raise Valuation Directly
- Meta paid roughly the $2B valuation Manus expected for its next round, effectively acquiring the company instead of funding it.
- The deal gives Meta a monetized product in a landscape where many Meta offerings are free.