who is Manus?
on December 29, 2025, Meta acquired AI agent startup Manus for more than $2 billion in a lightning-fast deal that took just 10 days from start to finish.
manus was founded in Beijing, China in 2022. formally known as Butterfly Effects Technology, it moved its headquarters to Singapore in mid-2025. It currently employs around 105 people and also has offices in Tokyo and San Francisco.
founder Xiao Hong's background
founder Xiao Hong was born in 1992 and graduated from the Department of Software Engineering at Huazhong University of Science and Technology. he founded his first startup in 2015, which gained 2 million enterprise users, and then Butterfly Effect in 2022, which amassed 10 million users with its Monica AI assistant. In March 2025, he unveiled Manus to the world.
the core technology behind Manus
manus isn't just a chatbot - it's a general-purpose AI agent that can autonomously search the web, analyze data, code, write documents, and even schedule appointments, all while you give it instructions.
the technical structure is a multi-agent system with four specialized agents working together. The Planner Agent creates an action plan, the Execution Agent performs the actual task, the Knowledge Agent retrieves information, and the Verification Agent verifies quality.
what's interesting is that Manus didn't develop its own AI model. instead, it uses a combination of Anthropic's Claude and Alibaba's Qwen models. it's a creative combination of existing technologies to create new value.
why did Meta acquire Manus?
meta had been leading the open source AI model ecosystem with its Llama series, but was lagging behind competitors in the AI agent space. OpenAI had already released Operator, Google had released Gemini Agent, and Microsoft had released Copilot Studio.
what Meta gains from the Manus acquisition is clear. first, it immediately gained proven agent technology; second, it gained a revenue model that had achieved $100 million in annual recurring revenue eight months after launch; third, it gained an infrastructure with a track record of processing 147 trillion tokens and creating 80 million virtual machines. fourth, the entire 105-person elite team joins the company.
at the same time as the acquisition, Meta completely cut Manus' Chinese connections. it liquidated all stakes from Chinese investors, including Tencent, and shut down its services and operations in China.
the backstory of the next Deepsea
the arrival of Manus in January 2025, just two months after DeepSeek took the world by storm, has been described as the second DeepSeek moment.
both companies had something in common: they were AI startups from China that took Silicon Valley by surprise. deepSeek shocked by developing GPT-4-class models at one-hundredth the cost, while Manus created a frenzy with more than two million people signing up for its waitlist in its first week.
but technically, there's a fundamental difference. deepSeek developed and open-sourced a large-scale language model, while Manus is an AI agent platform that cobbles together existing models and doesn't open up its technology. If DeepSeek built an AI engine, Manus built a car with an engine.
AI agent market competition
The AI agent market is expected to grow from $7.8 billion in 2025 to more than $47 billion in 2030, at a CAGR of 45%. according to McKinsey, 62% of organizations are experimenting with AI agents and 85% plan to adopt them by the end of 2025.
in the current big tech race, OpenAI boasts the highest level of reasoning power with its ChatGPT Agent and Operator. google is integrating its services, including search and YouTube, with Gemini Agent, and Microsoft is dominating the enterprise market with Copilot Studio. Anthropic is emphasizing safety with Computer Use.
meta's biggest strength is its 3 billion+ daily active users. By embedding AI agents into Facebook, Instagram, and WhatsApp, you can instantly reach billions of people without installing a separate app.
what's next?
following the acquisition of Manus, Meta's strategy will likely unfold in three directions.
the first is the agentization of Meta AI. meta AI, which is currently only capable of simple conversations, will be able to integrate Manus' autonomous execution capabilities to book flights on WhatsApp and automate shopping on Instagram.
second, we're expanding our subscription revenue model. leverage Manus' proven subscription model to diversify revenue streams with paid services like Meta AI Plus.
third, enter the enterprise market. we will leverage Manus' B2B customer base to enter the enterprise AI automation market.
the key takeaway from this acquisition is that the execution infrastructure is more important than the models. manus achieved $100 million in revenue and was acquired for $2 billion without any models of its own. The paradigm shift from the chatbot era to the agent era is underway.
frequently asked questions
Q1. How are Manus AI agents different from traditional chatbots?
A1. While traditional chatbots can only talk, Manus autonomously executes web searches, coding, scheduling, document creation, and more based on user instructions. it's an AI that actually does things, not just talks.
Q2. How much did Meta acquire Manus for?
A2. No official amount has been announced, but it is estimated to be more than $2 billion. some reports have mentioned up to $3 billion.
Q3. Why is Manus being called the next Deepsea?
A3. It is compared to DeepSeek in that the AI startup from China surprised the global market. however, the technical difference is that DeepSeek developed its own model, while Manus is an agent platform that utilizes existing models.
Q4. When will Meta users be able to use Manus features?
A4. No specific release date has been announced, but given that Meta has brought the entire Manus team on board and the CEO has been named Vice President of Meta, we expect it to be integrated into Meta AI in 2026.
Q5. How will the acquisition of Manus affect users in Korea?
A5. AI agent features will be available on Facebook, Instagram, and WhatsApp in the future. you will be able to experience automated AI assistant services on the platforms you already use without installing a separate app.
conclusion
meta's acquisition of Manus is a symbolic event that signals the AI industry's transition from the chatbot era to the agent era. with Meta, with 3 billion users, acquiring proven agent technology, 2026 will be the year of the full-blown AI agent wars.
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