A prominent player in the artificial intelligence startup arena has been acquired by Meta, marking the end of a fierce year-long competition among major U.S. tech companies vying for leadership in the highly sought-after technology sector.
Manus, a Singapore-based company with Chinese roots, specializing in agentic AI solutions for small and medium-sized enterprises, announced on Monday its integration into Meta, the parent company of Facebook, Instagram, and WhatsApp. Setting itself apart from AI chatbots like ChatGPT and Deepseek that require user inputs for task execution, Manus asserts its ability to autonomously make decisions and complete tasks with minimal prompting.
In contrast to many industry players that are valued primarily for their future potential rather than current profitability, Manus generates revenue through subscription-based product sales. The acquisition aims to enhance Meta’s existing platforms by infusing them with Manus’s technology, bolstering capabilities such as task completion and answering inquiries to prolong user engagement and increase revenue streams.
Reportedly acquired for $2 billion US, Manus represents a relatively economical investment considering its potential returns for Meta, which has been actively acquiring AI firms to compete with industry giants like OpenAI and Google throughout the year. With Meta striving to stay competitive in the AI landscape geared towards consumers, the incorporation of Manus’s technology could enhance user experience and monetization opportunities within Meta’s platforms.
However, the deal will face scrutiny from U.S. regulators due to Manus’s Chinese ownership, echoing concerns raised in previous cases involving Chinese-owned entities like TikTok. Given the sensitivity surrounding data security and privacy in relation to Chinese-owned companies, the approval process for the Meta-Manus deal may encounter obstacles amid geopolitical tensions.
Despite potential hurdles, Meta’s strategic moves reflect its commitment to leveraging emerging technologies to secure a leading position in the ever-evolving AI market, where competition and regulatory scrutiny are on the rise.
