Meta acquires Manus: A $2 billion AI agent generating over $100m annually

Mark Zuckerberg has stepped into the limelight once again, as Meta Platforms has, in a reportedly $2 billion deal, acquired Manus, a Singapore-based AI startup generating over $100 million in annual recurring revenue (ARR).

Although financial insights into Meta's Manus acquisition are still under wraps, the figure matches Manus' anticipated valuation for its next funding round.

Manus was founded in Beijing in 2022 and was later relocated to Singapore, and has grabbed the attention of Silicon Valley since its debut last spring.

The acquisition marks a big moment for Meta, as it's making moves to go beyond traditional chatbots to embrace advanced "AI agents."

Unlike most bots, Manus' technology autonomously performs complex tasks such as screening job candidates, planning vacations, and analysing stock portfolios. It even claimed to outperform OpenAI's Deep Research.

Besides generating over $100 million in annual recurring revenue (ARR), a more important thing about Manus is that it is a profitable venture that is attracting millions of users. This profitability addresses investor concerns regarding Meta's substantial $60 billion infrastructure spending, providing a working product that delivers real cash flow.

Manus CEO Xiao Hong expressed excitement about the acquisition. He stated that the era of AI that acts and delivers is just beginning.

Although Meta has plans to keep Manus independent, the AI agents will be integrated into platforms like Facebook, Instagram, and WhatsApp to reach billions of users.

The only seeming downside of the deal is the possible regulatory scrutiny ahead, due to Manus's origins. In response to concerns about American capital backing a Chinese entity, Meta has announced to discontinue all operations in China and eliminate any Chinese ownership interests following the acquisition.

Despite these challenges, analysts view the purchase as a significant boost to Meta's AI capabilities, positioning it for the next phase of the AI arms race.