Social media giant Meta has recently completed a merger that will be recorded in the history of AI development: acquiring AI startup Manus (parent company "Butterfly Effect") for several billion dollars.

This is not only Meta's third largest acquisition since its founding, following WhatsApp and Scale AI, but also caused a shock in the global technology community due to its astonishing speed of "ten days to finalize" and the Chinese entrepreneurial background behind it.

manus

Lightning Transaction: A Billion-Dollar Acquisition Finalized in Just Days

According to LatePost and Bloomberg, the negotiation process for this acquisition was extremely short, taking only about ten days. Even early investor Liu Yuan, partner at ZhenFund, expressed surprise, saying the speed was so fast that it seemed like a fake offer.

After the transaction, Butterfly Effect will continue to operate independently, with its founder Xiao Hong, who graduated from Huazhong University of Science and Technology, serving as Meta's Vice President. Previously, the company had a valuation of nearly $500 million in its B-round financing in April 2025, led by Benchmark Capital.

Core Assets: High-Growth "General AI Agent"

Meta's urgent move centers on Manus's strong monetization capabilities and technical barriers:

  • Strong Revenue: Manus provides AI subscription services for enterprises, and its annual recurring revenue (ARR) reached $125 million earlier this year.

  • All-Round Product: Manus is a "general AI agent" capable of scheduling various tools to solve complex problems, performing tasks such as screening resumes, analyzing stocks, and planning itineraries.

  • Strategic Complementarity: The team's previously developed browser plugin Monica has already achieved profitability. Meta plans to integrate Manus's technology into Facebook, Instagram, and smart glasses ecosystems.

Strategic Shift: From Investment Phase to Return Phase

Currently, Meta CEO Zuckerberg faces investor skepticism about the huge expenditures on AI. Although Meta has promised to invest $60 billion in infrastructure over the next three years, the market needs to see clear profit points. Manus's acquisition will provide Meta with more direct subscription income, helping it gain an advantage in the competition with OpenAI, Google, and Microsoft.

Historical Significance: Rise of a New Generation of Chinese Entrepreneurs

Butterfly Effect was founded by Xiao Hong, later attracting 90s-generation serial entrepreneur Ji Yichao and Zhang Tao. Starting from Wuhan, moving to Singapore, and finally being acquired at a high premium by a global giant, this team has taken a different path than traditional predecessors.