In a landmark deal that underscores the intensifying race for artificial intelligence supremacy, social media behemoth Meta has acquired the AI startup Manus for a staggering $2.5 billion. The acquisition, announced recently, is not just a financial transaction but a convergence of two remarkably similar entrepreneurial journeys, as highlighted by Manus's co-founder.
From College Dropouts to Tech Titans: A Shared Journey
Following the acquisition announcement, Ji Yichao, the 32-year-old chief scientist and co-founder of Manus, took to social media platform X to draw a poignant parallel between his path and that of Meta CEO Mark Zuckerberg. He shared two photographs showing younger versions of himself and Zuckerberg working on laptops in the same room at the iconic "Facebook House" in Palo Alto, California.
"21 years ago and 13 years ago, two dropouts in this same room set out on their own journeys. Today, those paths merge," Ji wrote. The comparison is strikingly apt. Ji began a computer science degree at Beijing Information Science and Technology University in 2010 but left to pursue entrepreneurship, later completing his degree in 2018. Zuckerberg famously dropped out of Harvard University in 2004 to build Facebook, which evolved into the Meta empire.
Meta's Massive Bet on AI Agents
This acquisition represents one of Meta's largest bets on the future of AI. The $2.5 billion deal notably includes a substantial $500 million retention pool specifically designed to keep Manus's talented employees onboard. Meta plans to integrate Manus's advanced technology into its core family of apps, including Facebook, Instagram, and WhatsApp, while maintaining Manus as a standalone subscription service.
Manus, which launched publicly only in March 2024, quickly made a name for itself as a "general-purpose" AI agent. Its capabilities range from conducting deep research and planning complex vacations to coding and performing stock analysis. This powerful utility propelled the startup to achieve over $100 million in annual recurring revenue and attract millions of users in less than a year, making it a prime target for Meta's ambitious AI roadmap.
Geopolitical Nuances and a Strategic Relocation
The deal, however, is layered with geopolitical complexity. Manus was originally founded by Butterfly Effect in Beijing and Wuhan, China, in 2022. In a strategic move to navigate the fraught U.S.–China tech rivalry, the company relocated its headquarters to Singapore in mid-2025. Meta has been explicit in stating that post-acquisition, there will be "no continuing Chinese ownership interests in Manus AI," and it will wind down the company's services in China.
In preparation for the deal, Manus reportedly laid off most of its Chinese staff and now operates with a lean team of 105 employees across its offices in Singapore, Tokyo, and San Francisco. The transaction had previously attracted scrutiny from U.S. lawmakers, with Senator John Cornyn criticizing Silicon Valley venture capital firm Benchmark for its backing of Manus, expressing concerns about American capital supporting Chinese tech interests.
Meta's monumental acquisition of Manus signals a new, aggressive phase in its AI strategy, merging cutting-edge technology with a narrative of entrepreneurial spirit that bridges continents and echoes the very origins of the company now writing the cheque.
