Meta Platforms announced the acquisition of AI startup Manus for over $2 billion on December 29, 2025. This deal comes amid concerns over Meta’s rising AI spending, which had led to a 12% decline in stock value from October’s earnings report through the end of the year. Despite the acquisition announcement, which coincided with a 1.1% rise in Meta’s shares, the larger context includes forecasts of higher spending that deeply affected investor sentiment.
Manus, which developed general-purpose AI agents capable of executing complex tasks, reported achieving $100 million in annual recurring revenue (ARR) within just eight months of its launch. The startup has created over 80 million virtual computers, demonstrating significant deployment of its technology. The acquisition positions Meta to enhance its business-centric model by automating a broader range of tasks for small to medium-sized businesses, leveraging both companies’ strengths in AI and data.
Meta’s market capitalization stands at over $1.6 trillion, reflecting its role as a partner for businesses seeking growth through advertising. The integration of Manus’s innovative tools aims to bolster Meta’s offerings, potentially accelerating revenue and earnings growth in the long term as it seeks to address the increasing demands and limitations of its customer base.
