This article first appeared on GuruFocus.
Meta Platforms Inc. (META, Financials) will acquire AI startup Manus for approximately $2 billion, according to a note from BMO Capital, marking a strategic move to bolster its artificial intelligence monetization efforts.
Meta is under a lot of pressure since its $121 billion AI investment program hasn’t yet produced profits like those of big companies like Microsoft and Google. Analysts argue that buying Manus might be a little step in the right direction for Meta, showing that it can make money.
Manus, which started less than a year ago, quickly grew to $100 million in annual recurring income, showing that it is good at making money using AI agents. The startup’s technologies should work well with Meta’s current AI infrastructure and product strategy.
After the news, BMO maintained its “Market Perform” rating and $710 price target on Meta. Now, investors will look for indicators of how Manus will be used and if it speeds up Meta’s move into commercial AI applications.
