Meta Acquires Singapore-Based Manus AI for $2 Billion in Landmark Southeast Asian Deal

Date: February 2026

In a groundbreaking move that signals Singapore's emergence as a premier destination for AI startups, Meta Platforms has acquired Manus, the Singapore-based AI agent startup, for over US$2 billion. The deal, announced in late December 2025, marks one of the largest acquisitions of an AI company in Southeast Asia and validates Singapore's strategy of attracting high-growth technology companies to its shores.

From China to Singapore: The Manus Journey

Manus was launched by Chinese AI product studio Butterfly Effect Technology in March 2025, just nine months before its acquisition by Meta. The startup quickly gained attention for developing what it claimed was the world's first "general" AI agent—a system capable of completing complex tasks autonomously, rather than merely providing instructions on how to carry them out.

However, it was the company's strategic move to Singapore in July 2025 that truly set the stage for this acquisition. Manus began hiring over 20 staff for its Singapore office while simultaneously laying off dozens of employees in its Beijing and Wuhan offices. The relocation was driven by multiple factors: better access to international markets and computing resources, including crucial AI chips, and the need to navigate escalating US-China tensions in technology.

"Moving to Singapore gave us the platform we needed to think globally," said Manus CEO Xiao Hong. The startup also removed all content from its Chinese social media accounts, and its tool became unavailable in China despite earlier statements that a Chinese version was under development.

What Makes Manus Special

At its core, Manus represents the next evolution in AI technology—the shift from passive language models to active AI agents. While traditional AI chatbots like ChatGPT or Gemini can provide instructions on how to complete tasks, Manus was designed to actually execute them end-to-end.

The platform's capabilities include resume-screening, financial document analysis, and stock analysis—tasks that typically require significant human effort and time. By combining versions of established AI models such as Anthropic's Claude and Alibaba's Qwen, Manus created a powerful agentic system that outperformed even OpenAI's Deep Research in internal benchmarks.

The startup's growth was nothing short of meteoric. Within months of its preview release, Manus amassed millions of users. Early access codes, officially released for free, were selling for as much as US$13,700 on secondary markets. By early December 2025, Manus reported an annual recurring revenue (ARR) exceeding US$100 million, with a total revenue run rate of more than US$125 million.

The $2 Billion Bet on AI Agents

Meta's acquisition of Manus represents a significant bet on the future of AI agents. Under CEO Mark Zuckerberg, Meta has been aggressively investing in AI, with 2025 guidance for AI spending between US$70 billion and US$72 billion. The company has also been paying top salaries to researchers developing next-generation AI models.

"This acquisition will enable us to expand the reach of our agents at a scale we never could have imagined," said Xiao Hong, who will join Meta as a Vice President following the deal. The Manus agents will be integrated into Meta's consumer and business products, potentially enhancing everything from Instagram to WhatsApp with more autonomous capabilities.

Industry analysts see the deal as part of a broader trend of Big Tech snapping up AI startups to stay competitive. "Meta needs agents to keep users engaged in a world where AI can do more than just chat," noted one tech analyst. "Manus gives them a head start in a market that's expected to explode."

What This Means for Singapore's AI Ecosystem

The Manus acquisition is a watershed moment for Singapore's ambitions to become a global AI hub. Just 18 months after opening its Singapore headquarters, the company achieved a billion-dollar exit—this is exactly the kind of success story the city-state needs to attract more AI talent and investment.

Singapore's strategic position as a neutral ground between the US and China has proven increasingly valuable as tech competition intensifies. For AI startups looking to access global markets while navigating geopolitical complexities, Singapore offers a compelling combination of talent, infrastructure, and regulatory clarity.

As Meta integrates Manus into its global operations, the deal will likely spur further interest in Singapore's AI startup scene. For now, the city-state can celebrate having produced one of Southeast Asia's most valuable AI companies—even if its next chapter will be written in Menlo Park.

This article is part of our ongoing coverage of Singapore's AI ecosystem. For more AI news and insights from the Lion City, stay tuned to AI Dominance SG.

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