We’re thrilled to share that Meta has acquired Manus. This generative artificial intelligence startup has taken the tech world by storm. Unlike some of the other companies mentioned here, Manus is entirely Chinese founded and owned, operating under its corporate parent, Butterfly Effect, which was founded in Beijing in 2022. To further solidify its competitive advantage in the international arena, the company moved its home base to Singapore in mid-2023.
Launched only eight months ago, Manus took the world by storm, boasting that it could beat OpenAI’s Deep Research. The startup has aced the math on signing millions of users and has crossed that magic $100 million in annual recurring revenue wholly based on subscription revenue. In April, Manus went on to raise its $75 million Series A round, led by Benchmark. This investment increased the company’s post-money valuation to $500 million. Other prominent investors have included Tencent, ZhenFund, and HSG, the latter better known as Sequoia China.
Fears that American investments in Chinese tech companies are helping fund the geopolitical adversary are growing. Senator Cornyn’s comments should serve as a wakeup call to all of the risks that are at stake. He criticized the judgment of U.S. investors funding what he termed “our greatest foe in AI.” He warned that this funding might ultimately help advance the goals of the Chinese Communist Party.
“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
A Meta spokesperson confirmed that the acquisition will eliminate any continuing Chinese ownership interests in Manus AI. After the deal closes, Manus AI plans to shut down its business and operations in China.
As such, this acquisition is an important step for Meta. It seeks to ramp up its strength in the rapidly-evolving field of AI. With this acquisition, Meta is hoping to bring Manus under its umbrella to leverage the startup’s pioneering technologies and third-party user base. This step responds to national security fears over foreign investments in AI.
