Meta acquires Chinese start-up Manus to expand agentic AI
What's the story
Meta, the parent company of Facebook, has acquired Chinese artificial intelligence (AI) start-up Manus. The deal is part of a larger strategy by Meta to leverage its massive investment in AI and create a sustainable business model around it. Manus's AI agent is already being sold on a subscription basis to small and medium-sized businesses (SMBs), which could provide an immediate return on some of Meta's AI investments.
Product capabilities
Manus's AI agent: A versatile tool for businesses
Earlier this year, Manus launched an AI agent capable of performing a range of general tasks. These include screening resumes, creating trip itineraries, and analyzing stocks based on simple instructions. The company's innovative product has been marketed by performing dozens of tasks for users on X at no cost.
Integration strategy
Meta's plans for Manus's AI technology
Meta has said it will run and sell the Manus service, integrating it into its consumer and business products. This includes Meta AI, further expanding the capabilities of advanced AI agents across its platforms. The move is seen as a major step in Meta's efforts to deepen the use of advanced artificial intelligence across its services amid growing competition in the industry.
Financial growth
Manus's financial journey and future prospects
Founded in China before relocating headquarter to Singapore, Manus had an annual revenue run rate of $125 million earlier this year. The company also raised funds at a nearly $500 million valuation. Meta has not disclosed the financial terms of the Manus acquisition, though the deal requires the startup to sever all ties with Chinese investors and halt its operations within China. This strategic decoupling aims to navigate intensifying Sino-US geopolitical tensions and address growing national security concerns.