Meta Acquires AI Startup Manus to Bolster Agency in AI Arms Race
The deal for the fast-growing startup, which reached $100 million in recurring revenue in eight months, signals Meta's aggressive push into advanced autonomous AI agents.
Meta Platforms (META) announced its acquisition of Manus, a rapidly growing agentic AI startup, in a strategic move to accelerate its capabilities in the fiercely competitive artificial intelligence landscape. The deal underscores a significant push by the social media giant to compete with rivals like Google, Microsoft, and OpenAI in the development of sophisticated, autonomous AI systems.
While financial terms of the deal were not disclosed, Manus has demonstrated remarkable growth, achieving an impressive $100 million in annual recurring revenue (ARR) just eight months after its launch. The Singapore-based startup specializes in creating autonomous AI agents capable of processing vast amounts of information, reportedly handling over 147 trillion data tokens. This technology is designed to perform complex, multi-step tasks for both consumers and businesses, a field known as 'agentic AI.'
Shares of Meta were trading modestly lower at $658.69 in late trading Monday, a slight dip of 0.70%. However, the company, with its massive $1.67 trillion market capitalization, is making a long-term strategic bet that goes beyond daily market fluctuations. The acquisition is a key part of Meta's broader AI strategy, which involves multi-billion dollar investments in infrastructure and research. The company has projected capital expenditures to reach between $60 billion and $65 billion in 2025, largely driven by its AI initiatives.
This acquisition comes as Meta is increasingly integrating AI across its suite of products, including its Meta AI search feature within WhatsApp, Instagram, and Facebook. The goal is to create more powerful and intuitive user experiences while reducing its reliance on search partners. According to a report from SiliconANGLE, Manus's technology will be integrated into the core Meta AI platform, enhancing its capabilities for both consumer-facing features and business-oriented services.
The competitive pressure in the agentic AI space has been intensifying. In recent months, Google launched its Gemini Enterprise platform, and Microsoft has been aggressively pushing its vision for autonomous agents with its Copilot Studio and Agent 365 offerings. Meanwhile, OpenAI, a key Microsoft partner, has also signaled advances in agentic capabilities. Meta’s acquisition of Manus is a direct response to these developments, aiming to secure specialized talent and cutting-edge technology.
Meta plans to allow Manus to continue operating as a separate offering, while its Singapore-based team will join Meta's global workforce. This hybrid approach suggests Meta values Manus's existing brand and customer base while simultaneously seeking deep integration of its underlying technology. This strategy aligns with Meta's open-source approach with its Llama language models, which it hopes will foster a broader ecosystem and accelerate innovation.
Analysts have a largely positive outlook on Meta, with 60 analysts rating the stock a 'Buy' or 'Strong Buy' against just eight 'Hold' ratings. The move to acquire a proven player like Manus is likely to be viewed favorably as a validation of its aggressive AI roadmap. As MarketWatch noted, the deal strengthens Meta’s position in a critical and fast-evolving technology sector.
The integration of Manus’s team and technology is expected to enhance Meta's ability to create AI agents that can assist with everything from coding and data analysis to managing smart devices and complex business workflows. For Meta, winning in the agentic AI space could unlock new revenue streams and cement its platforms as indispensable tools in the daily lives of its billions of users, positioning it for the next era of computing.