In a significant move to bolster its artificial intelligence capabilities, tech giant Meta announced on Monday its decision to acquire Manus, a startup specializing in advanced AI agents. This acquisition marks a strategic step in Meta's aggressive expansion within the competitive AI landscape.
Why Manus is a Strategic Prize for Meta
While Meta has not publicly disclosed the financial details of the transaction, a source with direct knowledge informed Reuters that the deal could value the Singapore-based firm at a staggering $2 to $3 billion. This acquisition is part of a broader trend where major technology companies are aggressively investing in AI to secure a leading position.
Meta has been actively making strategic AI investments. Earlier this year, the parent company of Facebook invested in Scale AI, a data labelling startup valued at $29 billion, and also hired its 28-year-old CEO, Alexandr Wang.
Can Manus's AI Agent Challenge OpenAI's Dominance?
Founded in China, Manus gained viral attention earlier this year on X (formerly Twitter) after launching what it claims is the world's first general AI agent. Unlike conventional chatbots like ChatGPT and DeepSeek, this program is designed to make decisions and execute tasks autonomously, requiring far less user prompting.
These advanced capabilities led many commentators and tech enthusiasts to label it as China's next DeepSeek. Reuters reported that the startup even received praise from Chinese state television. Notably, Manus claims its AI agent outperforms OpenAI's DeepResearch, though its services are not available in China itself.
Integration and the Revenue Imperative
According to Meta, the company plans to operate and sell the Manus service, integrating its technology into consumer and business products. This includes Meta AI, the company's existing chatbot. Meta told TechCrunch that Manus will continue to operate independently, while its AI agents will be woven into popular platforms like Facebook, Instagram, and WhatsApp.
Manus has been generating buzz in Silicon Valley since its debut last spring. A demo video showcased its AI agent performing complex tasks like screening job candidates, planning vacations, and analyzing stock portfolios. The startup recently announced it has millions of users and earns an annual recurring revenue of over $100 million from subscriptions.
For Meta CEO Mark Zuckerberg, this revenue-generating aspect of Manus is crucial. As reported by TechCrunch, it comes at a time when investors are closely scrutinizing Meta's massive $60 billion investment in data centers and the tech industry's expensive race to develop AI. Acquiring a proven, revenue-producing AI product helps validate these substantial investments.
