Meta Buys AI Startup Manus for Over $2B in Major AI Push
Deal for Singapore-based Manus, with its $100M+ in recurring revenue, accelerates Meta's race against Google and OpenAI in autonomous AI assistants.
Meta Platforms (NASDAQ: META) has announced a definitive agreement to acquire Manus, a Singapore-based artificial intelligence startup, for more than $2 billion. The deal is Meta's third-largest acquisition ever and its most significant since the blockbuster purchase of WhatsApp in 2014, signaling a massive strategic investment in the burgeoning field of AI-powered agents.
Investors reacted positively to the news, with Meta shares climbing 1.18% to $666.50 in Tuesday trading, pushing its market capitalization to approximately $1.67 trillion. The acquisition is a major move by the social media giant to accelerate its capabilities in the fiercely competitive AI landscape, positioning it more directly against advancements from Google and OpenAI.
A Strategic Play for a New AI Frontier
The prize is Manus's sophisticated autonomous AI technology, often described as a "virtual colleague." The platform has gained significant commercial traction, generating over $100 million in annual recurring revenue. Its AI agents are designed to automate complex corporate tasks, a capability Meta is expected to leverage across its own enterprise tools and eventually integrate into its consumer-facing products like WhatsApp, Messenger, and Instagram.
This acquisition is seen by analysts as both a technology and talent grab. As part of the deal, Manus’s founder and key leadership will join Meta, with the founder set to become a Vice President within Meta's AI division. The move underscores the premium that major technology firms are placing on teams that can build and deploy practical, revenue-generating AI solutions.
According to a report from the Los Angeles Times, Manus began its life in China before relocating its headquarters to Singapore, a detail that highlights the global race for AI talent and intellectual property. The company will now wind down its China-based operations as it integrates fully with Meta.
Competing in the AI Arms Race
Meta's acquisition of Manus is a direct response to the rapid developments from its chief rivals. Google has been aggressively integrating its Gemini family of models into its products, while Microsoft-backed OpenAI continues to set the pace for consumer-facing AI with its GPT models. By purchasing a company with a proven, commercially successful AI agent, Meta leapfrogs a significant portion of the development cycle.
This fits into Meta's broader, two-pronged AI strategy: developing powerful open-source foundational models like its Llama series while simultaneously acquiring specialized technologies to build a robust product ecosystem. The company has made its AI ambitions clear, committing tens of billions to infrastructure as it seeks to build a dominant position in what it sees as the next wave of computing.
"This is less about chatbots and more about creating autonomous systems that can execute tasks and streamline workflows, both for businesses and individuals," one technology analyst commented. "Manus provides a mature platform that Meta can build on immediately."
Market Outlook and Analyst Confidence
The deal lands amid a strong wave of investor confidence in Meta. The company's stock has performed well, though it remains below its 52-week high of $795.06. Wall Street analysts remain broadly bullish, with an average 12-month price target of $837.15, suggesting significant potential upside from its current levels. Of 68 analysts covering the stock, 60 rate it as a "Buy" or "Strong Buy," with only 8 maintaining a "Hold" rating and zero "Sell" ratings.
The acquisition of a task-automation AI startup is expected to provide Meta with a new narrative for growth, moving beyond its reliance on advertising revenue from its social media platforms. The integration of Manus's technology could unlock new revenue streams in enterprise software and enhanced functionality in its consumer apps that could drive user engagement.
As the ink dries on the multi-billion dollar agreement, all eyes will be on how quickly and effectively Meta can integrate Manus's "virtual colleagues" into its vast digital empire. The move solidifies the AI agent space as the next major battleground for big tech and marks Meta's most aggressive strategic play in a decade.