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Meta to buy Chinese-founded startup Manus to boost advanced AI

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Meta said on Monday it will acquire Chinese-founded artificial intelligence startup Manus, stepping up efforts to integrate more advanced AI capabilities across its platforms. Financial terms were not disclosed, but a source with direct knowledge of the matter said the deal values the Singapore-based firm at between $2 billion and $3 billion.

Manus did not immediately respond to a request for comment. The startup drew widespread attention earlier this year after releasing what it described as the world’s first general AI agent—software designed to make decisions and execute tasks autonomously with far less prompting than conventional chatbots such as ChatGPT or DeepSeek. The launch sparked viral discussion on X and led some commentators to label Manus “China’s next DeepSeek,” with praise from Chinese state television.

Months later, Manus moved its headquarters from China to Singapore, joining a broader wave of Chinese-founded tech firms seeking to reduce exposure to rising U.S.-China tensions. The company’s products are not available in China. Manus has claimed its AI agent outperforms OpenAI’s DeepResearch and maintains a strategic partnership with Alibaba to collaborate on AI models.

Meta said it will operate and commercialize the Manus service and integrate it into both consumer and business offerings, including Meta AI. The acquisition reflects intensifying competition among large technology companies racing to secure differentiated AI capabilities through deals and talent hires.

Earlier this year, Meta invested in Scale AI in a transaction valuing the startup at $29 billion and bringing in its CEO, Alexandr Wang. Manus, backed by parent company Beijing Butterfly Effect Technology, raised $75 million this year at a valuation of about $500 million, according to the source, confirming prior media reports. The funding round was led by Benchmark, with investors including HSG, ZhenFund and Tencent Holdings, PitchBook data showed.

Beijing Supports AI Startup Manus in Bid for Global AI Dominance

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Chinese AI startup Manus has made significant strides, with its China-facing AI assistant now officially registered and receiving notable state media attention, as Beijing continues to promote domestic AI companies. The startup, which recently garnered global attention for releasing what it claims is the world’s first general AI agent capable of making decisions and executing tasks autonomously, is being positioned as a key player in China’s ambition to rival global AI leaders.

Manus’ breakthrough moment came when the company went viral on social media platform X, following the introduction of its AI agent, which offers a more advanced and independent functionality compared to current AI chatbots like ChatGPT and the AI model DeepSeek. Beijing’s state-run CCTV aired a segment showcasing Manus, highlighting the AI agent’s unique capabilities, and comparing it to DeepSeek’s AI chatbot, which also gained recognition for offering competitive performance at a fraction of the cost of its U.S. counterparts.

The Chinese government has supported Manus’ development, with Beijing’s municipal government approving the registration of Manus’ earlier AI assistant, Monica, which is a necessary step for launching generative AI apps in China. This regulatory approval aligns with Beijing’s strategy of bolstering the domestic AI sector while maintaining tight control over content deemed sensitive by the authorities.

In addition to government backing, Manus secured a strategic partnership with the team behind Alibaba’s Qwen AI models, further strengthening its position in the competitive AI landscape. Manus’ AI agent is currently available through an invite-only system, with a waitlist reportedly exceeding 2 million users.

Alibaba’s AI Reasoning Model Drives Shares Higher

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Alibaba Group’s Hong Kong-listed shares surged by more than 8% on Thursday following the release of its new artificial intelligence (AI) reasoning model, QwQ-32B. The company claims that the model, with 32 billion parameters, delivers performance comparable to global AI hits like DeepSeek’s R1, which has 671 billion parameters.

The announcement was made through Alibaba’s AI unit on X, the platform formerly known as Twitter, where the company highlighted the QwQ-32B’s abilities in areas such as mathematical reasoning, coding, and general problem-solving. The model was put to the test in benchmark evaluations, performing on par with top AI models like OpenAI’s o1 mini and DeepSeek’s R1.

Alibaba’s new model is accessible via its chatbot service, Qwen Chat, where users can choose from a variety of Qwen models, including the powerful Qwen2.5-Max. The launch comes at a time when the Chinese government is increasing its support for industries, including artificial intelligence, humanoid robots, and 6G telecom.

DeepSeek, which has emerged as a key player in China’s AI landscape, continues to compete with global AI giants like OpenAI, offering models that rival the performance of more expensive alternatives with fewer computing resources.

In addition to Alibaba’s advancements, another AI release attracting attention was the introduction of Manus, an AI agent developed by the Chinese startup Monica. Manus, which outperformed OpenAI’s Deep Research in benchmarks for AI assistants, can help users with tasks such as travel planning and insurance comparisons. Currently by invitation only, a video showcasing Manus has gained significant interest, with over 280,000 views as of Thursday.