Meta Platforms Bets Big on Agentic AI with $2B+ Manus Acquisition

Meta Platforms (META) has announced its third-largest acquisition, agreeing to buy Singapore-based Manus AI for a sum reportedly between $2 billion and $3 billion in a major strategic push to accelerate its artificial intelligence capabilities.

The deal marks a significant investment in agentic AI, a frontier technology that enables AI to operate as autonomous agents, performing complex tasks like market research, coding, and data analysis. Meta plans to integrate this advanced technology across its vast ecosystem, including Meta AI, Facebook, Instagram, and WhatsApp, potentially transforming how its billions of users interact with its platforms.

Shares of Meta saw a muted reaction to the news, closing down 0.7% at $658.69 in a broader tech market downturn. With a market capitalization of $1.67 trillion, the acquisition represents a calculated, long-term bet rather than a short-term market catalyst. The move underscores CEO Mark Zuckerberg’s aggressive strategy to embed advanced AI at the core of every product and keep pace in a fierce innovation race with competitors like OpenAI, Google, and Microsoft.

The Strategic Prize: Manus AI

Manus AI, founded in China as Butterfly Effect Technology before relocating to Singapore, has demonstrated remarkable growth and sophistication. Even before the acquisition, the company had achieved an annual recurring revenue run rate exceeding $100 million just months after its launch in March 2025, according to industry reports. This rapid commercial success, coupled with its powerful general-purpose AI agent, made it a prime target for a tech giant seeking to fast-track its AI development.

In a notable detail of the agreement, Meta plans to continue operating and selling the Manus service independently while also absorbing its team. This suggests Meta values Manus's existing business and client base, intending to learn from its success while simultaneously weaving its underlying technology into Meta's own consumer-facing products.

A New Era of AI-Powered Features

The integration of Manus AI is poised to significantly enhance Meta's capabilities, moving beyond content recommendation algorithms to proactive, task-oriented AI assistants. For users, this could manifest as AI agents managing business communications on WhatsApp, creating sophisticated content on Instagram, or performing complex queries within Facebook. The acquisition is seen as a direct effort to double down on AI agents and escalate the rivalry with competitors who are also heavily invested in agentic AI.

This deal follows a pattern of strategic AI investments by Meta, positioning it as one of the most significant since its acquisitions of WhatsApp and its foundational work with Scale AI. The company's massive research and development budget has been heavily skewed towards AI and the metaverse, and the Manus purchase solidifies its commitment to building next-generation AI functionalities.

Market Outlook and Analyst Perspective

Despite the slight dip in its share price on the day of the announcement, Wall Street remains broadly confident in Meta's trajectory. The stock holds a consensus "Buy" rating, with 60 analysts recommending a buy or strong buy against just 8 holds. The average analyst price target sits at $837.15, implying significant potential upside from its current levels. The company’s forward P/E ratio of 22.17 suggests that investors are still pricing in strong future growth.

The long-term success of the Manus acquisition will depend on Meta's ability to seamlessly integrate the sophisticated technology and talent. While regulatory scrutiny could be a factor in any multi-billion dollar tech acquisition, the immediate challenge lies in execution. If successful, the investment could unlock new paradigms for user engagement and monetization, securing Meta's position at the forefront of the artificial intelligence revolution for years to come.