Meta has acquired Manus, the Singapore-based AI agent startup, in a deal valued at over $2 billion. According to The Wall Street Journal and Bloomberg, the agreement was struck in approximately 10 days remarkably fast for a transaction of this size.
The acquisition marks Meta's third-largest ever, trailing only WhatsApp and its recent $14.3 billion investment in Scale AI.
For Mark Zuckerberg, who has staked Meta's future on artificial intelligence, Manus offers something his company desperately needs: an AI product that's actually generating revenue.
What Meta Is Buying
Manus launched publicly in March 2025 with a demo video that went viral. The clip showed an AI agent screening job candidates, planning holidays, and analysing stock portfolios all without human supervision. The company claimed its technology outperformed OpenAI's Deep Research system.
Within weeks, Benchmark led a $75 million Series B round at a $500 million valuation. By December, Manus had reached $100 million in annual recurring revenue, just eight months after launch. CNBC reports this makes Manus the fastest startup globally to hit that milestone.
"Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," said Manus CEO Xiao Hong in the company's official announcement. Xiao will join Meta as a Vice President following the acquisition.
Meta confirmed it will continue operating Manus as a standalone subscription service while integrating the technology into Facebook, Instagram, WhatsApp, and Meta AI.
The China Question
There's a geopolitical wrinkle. Manus was founded in Wuhan, China, in 2022 under parent company Butterfly Effect. It relocated headquarters to Singapore this summer a move many interpreted as managing US-China tensions.
Meta moved quickly to address concerns. A spokesperson told Nikkei Asia:"There will be no continuing Chinese ownership interests in Manus AI following the transaction, and Manus AI will discontinue its services and operations in China."
Senator John Cornyn had already criticised Benchmark's investment in Manus back in May, questioning the wisdom of US venture capital flowing to Chinese-founded AI companies. Whether this acquisition faces regulatory scrutiny in Washington remains to be seen.
The AI Agent Gold Rush
This deal fits a broader pattern. 2025 has been the year of AI agents software that doesn't just answer questions but actually executes tasks. Microsoft began testing Manus in Windows 11 PCs in October. OpenAI, Google, and Anthropic are all racing to deploy similar capabilities.
Meta's spending spree reflects this urgency. Beyond Manus, the company invested $14.3 billion in Scale AI and acquired AI wearables startup Limitless earlier this month. According to CB Insights, Q3 2025 saw the second-highest quarter on record for AI startup M&A activity, with 172 deals.
The message is clear: big tech isn't waiting for AI startups to IPO. They're acquiring them fast and at premium valuations.
What This Means for UK AI Founders
Here's what most coverage of this deal misses: the exit opportunity it represents for founders building in the AI agent space.
Manus went from launch to $2 billion acquisition in nine months. Its Series B valued the company at $500 million in April. Eight months later, it sold for 4x that amount. Early investors like Benchmark, Tencent, and HSG (formerly Sequoia China) saw extraordinary returns in under a year.
For UK founders, this matters. Britain has long struggled to retain its most promising AI companies. According to Tech Nation's 2025 AI Spotlight report, 95% of UK AI exits over the past five years were acquisitions rather than public listings. The domestic IPO market remains weak.
But that's not necessarily bad news. The Manus deal shows that acquisition can be a highly lucrative exit, if you're building in the right space. AI agents, autonomous systems, and task-oriented AI tools are exactly what the tech giants are hunting for.
The top UK AI investments of 2025 include companies like Wayve (autonomous vehicles), PolyAI (voice agents), and Synthesia (AI video) all operating in adjacent spaces.
Three Lessons from the Manus Playbook
Revenue matters more than hype. Manus wasn't just another AI demo. It had a paid subscription model from day one $39 or $199 per month and reached $100 million ARR before selling. That revenue made it far more attractive to Meta than a promising prototype with no business model.
Speed is a feature. The deal closed in 10 days. Manus was reportedly seeking another funding round at a $2 billion valuation when Meta approached. Rather than raise more capital and dilute further, the founders sold. For UK founders weighing their options, the lesson is clear: when the right offer comes, move fast.
Geography is flexible. Manus was founded in China, relocated to Singapore, and sold to an American company. It operated globally from day one. UK founders building AI shouldn't think of Britain as their only market or their only exit destination. The UK's AI ecosystem is attracting unprecedented investment, but the acquirers are global.
The Flip Side: Building to Be Acquired
There's a tension here. The UK government has repeatedly warned about becoming an "incubator economy" a place where startups are born but don't stay. DeepMind sold to Google in 2014. ARM was acquired by SoftBank. Darktrace went to Thoma Bravo for $5.3 billion.
Every acquisition enriches founders and early investors. But it also means the long-term value creation happens elsewhere. Meta will integrate Manus into products used by billions of people. The technology will evolve under Meta's ownership, not as an independent company.
For founders considering their options, the question isn't whether acquisition is good or bad. It's whether it's the right outcome for what they're building.
Manus's founders chose liquidity and scale over independence. That's a valid choice but it's not the only one.
What Happens Now
Meta says it will keep Manus running as a separate subscription service while weaving the technology into its core products. Imagine WhatsApp with an AI agent that can book your flights, or Instagram with a personal assistant that manages your content calendar. That's where this is heading.
For the broader AI agent market, the Manus acquisition validates the category. Expect more deals like this in 2026 as Microsoft, Google, Apple, and Amazon compete to acquire the best agent technology.
And for UK founders building in this space? The exit path just got clearer. The question is whether you want to take it.
The UK's AI sector raised over £3.4 billion in venture capital in 2025, 30% of all British VC funding.
Companies like the top early-stage AI accelerators are nurturing the next generation of founders. Whether those founders build to stay or build to sell, deals like Manus show what's possible when you get it right.
