After the market close on December 29 in the US Eastern Time Zone, media reports indicated that Meta acquired Butterfly Effect, the company behind AI application Manus, for billions of dollars. This marks Meta's third-largest acquisition since its establishment, with expenses surpassed only by WhatsApp and ScaleAI.
The acquisition represents a significant step for Meta in building its business around massive AI investments, as artificial intelligence has become a core focus for CEO Mark Zuckerberg and the company’s top priority. As of earlier this year, Manus had achieved an annual revenue run rate of $125 million. It sells AI agents through a subscription service model, which is expected to yield more direct returns on some of Meta's AI investments. The specific financial terms remain undisclosed.
Manus's parent company was initially founded in China but later relocated to Singapore. Earlier this year, it raised funds from investors, including venture capital firm Benchmark, at a valuation close to $500 million. Earlier this year, Manus also launched an AI agent capable of performing routine tasks such as screening resumes, creating itineraries, and analyzing stocks, all requiring only basic instructions.
