Meta acquires Chinese startup Manus to strengthen advanced AI

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Dec. 29 (Reuters) – META (META.O)opens a new tab announced on Monday that it will acquire Manas, an artificial intelligence startup founded in China. That comes as tech giants accelerate efforts to integrate advanced AI across their platforms.

Financial terms of the Manas deal were not disclosed, but the deal would value the Singapore-based company between $2 billion and $3 billion, according to people with direct knowledge of the matter.

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Manas did not immediately respond to a request for comment.

Once hailed as China's next Deep Seek, Manas made headlines earlier this year when it released what it claims is the world's first general-purpose AI agent that can autonomously make decisions and perform tasks with far fewer prompts than an AI chatbot.

Since then, the Chinese government has expressed interest in supporting Manus, which claims its AI agents outperform OpenAI's DeepResearch. The company also has a strategic partnership with Alibaba (9988.HK).opens a new tab Collaborate on AI models.

The company said Meta will operate and sell the Manus service and integrate it into consumer and business products, including Meta AI.

Tech giants like Meta are ramping up their investments in AI through strategic acquisitions and talent hires to survive intense industry competition. Earlier this year, Facebook's owner invested in Scale AI in a deal that valued it at $29 billion and brought in 28-year-old CEO Alexander Wang.

Manas raised $75 million this year at a valuation of about $500 million, backed by parent company Beijing Butterfly Effect Technology, according to media reports. US venture firm Benchmark led the funding round.

The company is among a number of Chinese companies that have established a base in Singapore in recent years, betting that relocating to the trade-centric city-state will reduce the risk of disruption to their operations due to geopolitical tensions in Sino-American countries.

Reporting by Harshita Mary Varghese in Bengaluru. Additional reporting by Mihika Sharma in Bengaluru, Kane Wu in Hong Kong and Xinghui Kok in Singapore. Editing: Nivedita Bhattacharjee, Miyoung Kim, Sam Holmes

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