Meta Strikes Multibillion-Dollar Acquisition of AI App Studio Butterfly Effect, Valuing Manus at $20B Before the Deal

Industry sources report that Meta is pursuing the acquisition of Butterfly Effect, an AI application developer, with a deal described as multi‑billion in scope. If consummated, the transaction would rank among Meta’s largest M&A moves to date, behind only WhatsApp and Scale AI. In the run‑up, Manus was reportedly valued at roughly $20 billion in a recent financing round, underscoring a strategic premium at the intersection of AI, fintech, and digital assets.

Founders reportedly hesitated at first, but Meta’s terms and long‑term vision prevailed. Mark Zuckerberg, along with several core executives, is cited as a user of Manus, reflecting alignment with Meta’s ecosystem. If the deal closes, Butterfly Effect would continue operating independently, with founder Xiao Hong moving into a Vice President role at Meta, enabling a managed integration while preserving product autonomy and potential crypto‑market synergies.