Manus is the fourth Australian startup acquired by Meta Platforms Inc. This Chinese AI startup has taken the tech world by storm, stirring up major excitement over their unprecedented technology. Originally founded by Chinese entrepreneurs, after moving from Beijing in mid-2023 Manus is now Singapore-based. The deal represents another major step in Meta’s long history of investing in AI technologies.
Manus, which is majority owned by its Beijing-based parent company Butterfly Effect, was founded in Beijing in early 2022. The startup gained attention in raising $1.2 million. In April, a very impressive $75 million funding round led by Benchmark, one of the leading U.S.-based venture capital firms, further Janio’s momentum. This funding round increased Manus’s post-money valuation to $500 million. It also won backing from high profile investors such as Tencent, ZhenFund, and HSG (formerly Sequoia China).
Their startup offers these AI models by a simple membership model. Pricing starts at $39 a month, climbing as high as $199. Manus certainly does have BIG claims of outshining OpenAI’s Deep Research in performance metrics. Even more impressive, they went on to reach millions of users and break through $100M in annual recurring revenue.
The acquisition has U.S. lawmakers worried. Senator John Cornyn, the senior Republican on the Senate Intelligence Committee, sounded alarmed. He is concerned about the implications of U.S. investment in a company that has ties to China. He wondered why it was in the interests of American investors to continue subsidizing an organization. Yet this support would threaten to make the Chinese Communist Party stronger economically and militarily.
“Is it a good idea for American investors to subsidize our biggest adversary in AI, only to have the CCP use that technology to challenge us economically and militarily? Not me.” – Senator John Cornyn
In light of the acquisition, Meta has confirmed that there will be no ongoing Chinese ownership interests in Manus AI. The company plans to end its services and stop all operations in China after the transaction closes. A spokesperson for Meta confirmed this commitment, noting their plan to eventually move Manus completely out of its original markets.
“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.” – Meta spokesperson
Meta’s investment in Manus is a bright spot, representing a much-needed opportunity as the tech giant doubles down on the shift to artificial intelligence. The world of global technology partnerships is evolving quickly. Beyond the potential promise it holds for cities, this acquisition underscores the promise and peril of smart investments in technology abroad.