Meta Acquires Manus in Third-Largest Deal Ever, Betting Billions on AI Agents

December 29, 2025 · by Fintool Agent

META

Meta Platforms-0.88% is making its most significant AI acquisition yet, announcing Monday it will acquire Singapore-based startup Manus in what reports indicate is a multi-billion dollar deal—the company's third-largest acquisition ever after WhatsApp ($19 billion) and Scale AI ($14.8 billion). 1

The acquisition marks a dramatic escalation in the AI agent wars, as Meta moves to acquire what has become one of the fastest-growing AI startups in history. Manus achieved $125 million in annual recurring revenue just eight months after launch—the fastest any AI startup has reached that milestone. 2

Meta shares closed at $658.69, down 0.7% on a quiet pre-New Year trading session.

The Deal: Billions for an AI Agent Powerhouse

While financial terms weren't officially disclosed, LatePost reported the deal reached into the billions of dollars, making it Meta's third-largest acquisition in company history. 3 ZhenFund, a long-term investor in Manus's parent company Butterfly Effect, confirmed the deal's historic scale.

Manus builds general-purpose AI agents—autonomous systems that can execute tasks like research, data analysis, resume screening, and trip planning with minimal human prompting. The startup processed over 147 trillion tokens in 2025 and created more than 80 million virtual computers while serving millions of users globally. 4

Under the deal:

• Manus will continue operating from Singapore and remain a separate service
• 100 team members will join Meta Superintelligence Labs (MSL) in Singapore
• The Manus agent will be integrated into Meta's consumer and business products, including Meta AI
• Alexandr Wang, head of MSL and former Scale AI CEO, will oversee the integration

Ask Fintool AI Agent

Show me Meta's total AI-related investments and acquisitions over the past two years

Why Manus? The Fastest-Growing AI Startup Ever

Manus's trajectory has been extraordinary by any measure. The company:

Founded in 2023 as part of Beijing-based Butterfly Effect Technology, Manus moved its headquarters to Singapore in June 2025—a strategic decision that positioned it to navigate U.S.-China geopolitical tensions while maintaining access to global markets. 1

The startup's agent technology claimed to outperform OpenAI's DeepResearch agent, generating significant buzz when invitation codes became "extremely hard to get" at launch. 2

Meta's AI Acquisition Playbook

The Manus deal follows Meta's playbook of using strategic acquisitions to accelerate capabilities rather than building organically. In June 2025, Meta completed its $14.8 billion investment in Scale AI—a 49% non-voting stake—that brought 28-year-old CEO Alexandr Wang to Meta to lead its Superintelligence Labs. 3

Now, Wang will oversee the Manus integration, creating an AI powerhouse combining:

• Scale AI's data labeling and training infrastructure ($29B valuation)
• Manus's consumer-facing AI agent technology and subscription revenue
• Meta's distribution through 3+ billion users across Facebook, Instagram, WhatsApp, and Messenger

Meta's Q3 2025 10-Q explicitly states the company is "making significant investments in AI initiatives, including generative AI and superintelligence" and expects these investments to "require significantly increased investment in infrastructure." 4

Ask Fintool AI Agent

Compare Meta's AI capex trajectory versus Google and Microsoft over the past 8 quarters

Meta's AI Investment Surge

Meta's capital expenditures have surged as the company ramps AI infrastructure:

*Values retrieved from S&P Global

The company's infrastructure spending more than doubled from Q4 2023 to Q3 2025, reflecting its AI buildout. Meta's CFO Susan Li told investors that "infrastructure will be the single largest contributor to 2026 expense growth," driven primarily by depreciation from AI-related assets. 1

The AI Agent Wars Heat Up

The acquisition comes as AI agents emerge as the next major battleground in artificial intelligence. The global AI agent market, valued at $7.9 billion in 2025, is projected to reach $236 billion by 2034—a 45.8% compound annual growth rate. 2

The competitive intensity is unprecedented:

• OpenAI and Anthropic co-founded the Agentic AI Foundation in December 2025, establishing open standards for agent interoperability 3
• Google launched its Agent2Agent protocol and Agentspace enterprise platform
• Microsoft is integrating agents into Copilot across 365 products
• Anthropic reached a reported $350 billion valuation with Claude Opus 4.5

Meta has lagged in the agent race—until now. The company's recent AI struggles included delays to Llama 4 and departures of key AI researchers. The Manus acquisition represents a "buy versus build" strategy that could immediately close the gap.

Ask Fintool AI Agent

What have Meta executives said about their AI strategy and competitive position in recent earnings calls?

What to Watch

Integration timeline: Meta says Manus will "continue to operate and be sold" as a separate service while being integrated into Meta AI. The dual-track approach mirrors the early days of Instagram and WhatsApp, which maintained independence before deeper integration.

Regulatory scrutiny: With Meta currently fighting an FTC antitrust case over its Instagram and WhatsApp acquisitions, this deal will draw regulatory attention. The 49% non-voting structure used for Scale AI helped avoid regulatory triggers—the Manus deal's structure hasn't been disclosed. 1

Revenue contribution: Manus's $125M ARR is meaningful but tiny relative to Meta's $180B+ annual revenue run rate. The strategic value lies in accelerating Meta's AI capabilities, not immediate financial impact.

Geopolitical considerations: Despite Singapore domicile, Manus's Chinese origins may invite scrutiny. The startup was founded as part of Beijing Butterfly Effect Technology before relocating.

Ask Fintool AI Agent

Track Meta's stock performance relative to the NASDAQ 100 over the past year

Related

• Meta Platforms-0.88%