Meta Sells AI Startup Manus For Original Price

Meta is engaged in talks to sell the Chinese agentic AI startup Manus, a transaction that aligns with Beijing's requirements and is occurring roughly a year after Meta's initial acquisition. The sale price is reported to be around $2 billion, equivalent to its purchase price, which was 20 times its then-annual recurring revenue of $100 million.

This divestment is influenced by geopolitical considerations, necessitating approval from Beijing and narrowing the buyer pool primarily to Chinese investors, some of whom were original stakeholders. These investors may acquire Manus at a reduced valuation, estimated at four to five times its latest annual recurring revenue, representing a 'geopolitical discount.'

Despite not necessarily achieving a profit, Meta has reportedly leveraged Manus's AI technology, integrating its subagents into ad management tools. The rapid pace of AI development suggests that an 'acqui-rent' strategy, where technology is used temporarily without long-term ownership, can be advantageous, especially for technologies that may quickly become outdated.

Manus, initially hailed as a potential 'ChatGPT operator killer,' operates as a wrapper on Anthropic's Claude model. The competitive landscape is evolving with numerous Chinese companies developing their own advanced AI models. The future of Manus may involve an initial public offering in Hong Kong or mainland China, although market uncertainties surrounding AI could pose challenges.