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flag Meta bought Chinese AI startup Butterfly Effect in a multibillion-dollar deal, signaling a shift to real-world AI applications.

flag In December 2025, Meta acquired Butterfly Effect, a Chinese AI startup known for its agent platform Manus, in a multibillion-dollar deal marking a shift from competition over large language models to real-world AI applications. flag The acquisition highlights growing industry focus on AI agents that plan and execute complex tasks, requiring significant computing power. flag While some in China viewed the sale as a loss of innovation, others saw it as validation of Chinese AI talent. flag The move underscores a structural undervaluation of application-layer AI in China, where investment has favored foundational models. flag Meta’s investment sets a precedent, likely accelerating consolidation in the AI agent sector, with major firms expected to intensify their own strategies. flag The deal signals a new era where control over real-world AI deployment will define technological and economic power.

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