Meta announced on Monday its strategic acquisition of Manus, a Singapore-based startup specializing in artificial intelligence. This move signifies Meta's rapid expansion into advanced AI platforms, though the financial terms of the transaction were not publicly disclosed. However, sources familiar with the deal suggest it could value Manus at an estimated $2-3 billion, reflecting the intense competition among tech giants to develop and deploy cutting-edge AI technologies.

This acquisition is part of Meta's broader strategy to make significant investments in AI amidst fierce industry competition. Earlier this year, the Facebook parent company also invested in Scale AI, a data labeling startup, and brought on its CEO, Alexandr Wang, highlighting Meta's commitment to strengthening its AI capabilities.

Manus garnered significant attention early this year, going viral on X (formerly Twitter) following the launch of what it described as the world's first general AI agent. This innovative program is distinguished by its ability to make autonomous decisions and complete tasks with minimal prompting, setting it apart from conventional AI chatbots like OpenAI's ChatGPT and DeepSeek. Its advanced capabilities led commentators and tech enthusiasts to dub it 'China's next DeepSeek,' even earning praise from Chinese state television, according to Reuters. Manus also claims its AI agent surpasses OpenAI's DeepResearch in performance, though its services are not available in China.

Manus has been making substantial waves in Silicon Valley since its debut last spring, captivating audiences with a demo video that showcased its AI agent performing complex tasks such as screening job candidates, meticulously planning vacations, and analyzing stock portfolios, as reported by TechCrunch. Meta plans to integrate Manus's AI agents into its key consumer and business products, including Facebook, Instagram, and WhatsApp, alongside its existing chatbot, Meta AI. Despite this integration, Meta has stated that Manus will continue to operate independently.

The acquisition holds particular importance for Meta's CEO, Mark Zuckerberg, as Manus represents a rare AI product that already generates substantial revenue. Manus recently announced that it has millions of users and achieves an annual recurring revenue exceeding $100 million from its monthly and yearly subscribers. This revenue-generating aspect is crucial at a time when investors have expressed concerns regarding Meta's significant $60 billion investment in data centers and the substantial costs associated with AI development across the broader tech industry.