Meta Acquires Chinese AI Startup Butterfly Effect for Billions
Meta has finalized an exclusive agreement to acquire Butterfly Effect, a Wuhan-based Chinese startup responsible for developing the AI agent Manus. The multi-billion dollar transaction marks the third-largest acquisition in Meta's history, surpassed only by its purchases of WhatsApp and Scale AI. Founded in 2022 by Xiao Hong, the company completed the deal rapidly within approximately ten days. As part of the agreement, Xiao Hong will join Meta as a Vice President, while Butterfly Effect will continue to operate independently. Prior to this acquisition, the startup was negotiating a funding round at a $2 billion valuation and had reportedly received a $30 million offer from ByteDance in early 2024. Manus, known for its autonomous tool-use capabilities for complex tasks, achieved $100 million in Annual Recurring Revenue by mid-December. This strategic move underscores Meta's aggressive expansion into the artificial intelligence sector, specifically targeting advanced AI agents capable of independent operation. The deal highlights the intense competition among tech giants to secure top-tier AI talent and technology from emerging markets.
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Meta Acquires Chinese AI Startup Butterfly Effect for Billions
Meta has finalized an exclusive agreement to acquire Butterfly Effect, a Wuhan-based Chinese startup responsible for developing the AI agent Manus. The multi-billion dollar transaction marks the third-largest acquisition in Meta's history, surpassed only by its purchases of WhatsApp and Scale AI. Founded in 2022 by Xiao Hong, the company completed the deal rapidly within approximately ten days. As part of the agreement, Xiao Hong will join Meta as a Vice President, while Butterfly Effect will continue to operate independently. Prior to this acquisition, the startup was negotiating a funding round at a $2 billion valuation and had reportedly received a $30 million offer from ByteDance in early 2024. Manus, known for its autonomous tool-use capabilities for complex tasks, achieved $100 million in Annual Recurring Revenue by mid-December. This strategic move underscores Meta's aggressive expansion into the artificial intelligence sector, specifically targeting advanced AI agents capable of independent operation. The deal highlights the intense competition among tech giants to secure top-tier AI talent and technology from emerging markets.
TechNode