Meta Buys AI Startup Manus — and Now Regulators Are Watching

Intermediate | January 13, 2026

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Meta buys AI startup Manus: a $2B+ bet on “AI agents”

If you’ve been hearing the phrase “AI agent” everywhere lately, Meta just made it even louder. Meta (the company behind Facebook and Instagram) agreed to buy Manus, a Singapore-based AI startup with Chinese roots, in a deal reported to be more than $2 billion. (AP News; The Wall Street Journal)

So what is Manus, exactly? Think of it as a tool that can do more than chat. Manus markets itself as a general-purpose AI agent—software that can plan and execute multi-step tasks (like research, coding, or building business workflows) with less “hand-holding” than typical chatbots. Reuters reported Manus went viral after claiming it built a “general AI agent” that can make decisions and carry out tasks autonomously. (Reuters)

Why Meta wanted Manus (hint: paying users and real work)

According to Meta’s statement, Manus is already serving “millions of users and businesses worldwide,” and Meta wants to scale that kind of agent-style help across its products—including Meta AI. (AP News; Reuters)

Manus also said it plans to keep selling subscriptions through its own app and website, and it will continue operating from Singapore. In the Manus announcement, CEO Xiao Hong said joining Meta gives the company a “stronger, more sustainable foundation” without changing how Manus works day to day. (Manus blog)

The price, the valuation, and the speed of growth

Meta didn’t publish the exact price tag. But AP reported that The Wall Street Journal put the deal at more than $2 billion, and Reuters reported a source estimated the deal valued Manus at $2–$3 billion. (AP News; Reuters)

Why would Meta pay that much? One reason is traction. AP noted Manus recently reported crossing $100 million in annual recurring revenue (ARR)—a big number that suggests lots of customers are paying subscriptions. Reuters also reported Manus raised $75 million earlier in 2025 in a round led by Benchmark, at a valuation around $500 million, which makes the Meta deal look like a huge leap in a short time. (AP News; Reuters)

The complication: China reviews the deal

Here’s where this stops being a simple business story. Reuters reported that Chinese officials are reviewing the deal to see whether moving Manus staff and technology from China to Singapore—and then selling the company—should have required an export license under Chinese law. The review is early and might not become a full investigation, but it could still create leverage for Beijing to influence or slow the transaction. (Reuters)

AP also reported that China’s Commerce Ministry announced it would investigate whether the deal complied with Chinese investment, tech export, and data regulations, especially given Manus’ roots in Chinese-registered entities. (AP News)

Why this story matters (even if you don’t care about Meta)

This is the bigger lesson: AI is moving from “chatting” to “doing.” And companies aren’t just racing to build models—they’re buying products that already have paying users and practical workflows. At the same time, governments are treating advanced AI talent and know-how like strategic assets. So when Meta buys AI startup Manus, it’s not only a tech story. It’s also a story about regulation, geopolitics, and who gets to control the next generation of tools.

Vocabulary

acquisition (noun) – when one company buys another company.
Example: “Meta’s acquisition of Manus could reshape its AI strategy.”
valuation (noun) – the estimated financial value of a company.
Example: “Reuters reported a valuation between $2 and $3 billion.”
subscription (noun) – a paid plan that gives continued access to a service.
Example: “Manus sells subscriptions to businesses that use its AI tools.”
annual recurring revenue (ARR) (noun) – yearly income a company expects to receive repeatedly from subscriptions.
Example: “Manus said it crossed $100 million in ARR.”
integrate (verb) – to connect and combine into one system.
Example: “Meta plans to integrate Manus into Meta AI.”
autonomous (adjective) – able to act or operate without constant human control.
Example: “Manus describes its agent as autonomous for multi-step tasks.”
regulatory review (noun) – when government officials examine a deal to check compliance with laws.
Example: “The acquisition faces a regulatory review in China.”
export controls (noun) – laws that restrict sending certain technologies or knowledge out of a country.
Example: “China’s export controls may affect how AI tech moves abroad.”
compliance (noun) – following laws, rules, or standards.
Example: “The investigation focuses on compliance with tech export rules.”
leverage (noun) – power or influence used to gain an advantage.
Example: “The review could give officials leverage over the deal.”

Discussion Questions (About the Article)

Why do you think Meta wants an “AI agent” company instead of just building everything in-house?
Which detail stood out to you most: the price, the revenue, or the China review?
How does a subscription business model change the value of an AI company?
What risks do you think exist when AI technology moves across borders?
If you were a Meta executive, what would you want Manus to improve first inside Meta AI?

Discussion Questions (About the Topic)

Where do you think AI agents will be most useful first: work, school, or daily life?
Should governments treat AI like a strategic technology (similar to chips or defense tech)? Why?
What’s the difference between an AI that “talks” and an AI that “does”?
What concerns would you have about using an AI agent at work?
How could companies use AI agents responsibly without replacing human judgment?

Related Idiom / Phrase

“Under the microscope” – being watched and examined very closely.

Example: “After the acquisition, Meta and Manus are under the microscope from regulators.”

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This article was inspired by: The Wall Street Journal, Reuters (deal report), Reuters (China review), AP News (deal), AP News (China probe), and the Manus blog.