Meta Platforms Expands AI Reach with $2 Billion Acquisition of Manus
In a significant move, Meta Platforms has announced its acquisition of Manus, a Singapore-based AI startup that garnered widespread attention in Silicon Valley following its viral debut video earlier this year. This demonstration showcased the potential of Manus’ AI agents to perform diverse tasks such as screening job applicants, organizing vacations, and evaluating stock portfolios. Impressively, Manus claimed its technology surpassed that of OpenAI’s Deep Research.
Founded just a few months ago, Manus quickly captured investor interest, securing a $75 million funding round led by Benchmark in April, which set its valuation at approximately $500 million. Prominent backers included Tencent and ZhenFund, reflecting a strong confidence in Manus’ innovative concepts.
Despite initial skepticism about its subscription pricing of $39 and $199 monthly—considered steep for a service still undergoing testing—Manus has successfully amassed millions of users and surpassed $100 million in annual recurring revenue. This marked growth prompted Meta to begin discussions with Manus, ultimately finalizing a deal valued at $2 billion—coinciding with the startup’s anticipated valuation for its next funding round.
Mark Zuckerberg’s commitment to advancing Meta’s AI initiatives positions Manus as a promising addition to its portfolio. The company intends to maintain Manus’ independent operations while integrating its agents into popular platforms like Facebook, Instagram, and WhatsApp, where users can already access Meta AI.
However, the acquisition comes with complications: Manus, founded by Chinese entrepreneurs who relocated their original company to Singapore, has drawn scrutiny, especially from U.S. officials concerned about Chinese technology investments. Senator John Cornyn has vocalized concerns regarding American investments in firms potentially bolstering adversarial capabilities. In response, Meta has assured that Manus will sever ties with Chinese investors post-acquisition and will cease operations in China entirely.
Key Points:
– Meta acquires Manus for $2 billion, enhancing its AI capabilities.
– Manus’ AI agents offer diverse services, gaining quick user adoption and revenue growth.
– The acquisition will proceed with a focus on removing Chinese ownership interests and operations in China to alleviate geopolitical concerns.
