Meta, led by Mark Zuckerberg, has announced the acquisition of the startup “Manas,” which quickly became the focus of Silicon Valley’s attention thanks to an impressive demonstration that went viral after it was published.
“Manas,” a Singapore-based company, emerged remarkably this spring with a video showcasing the capabilities of an AI agent capable of performing complex tasks, such as reviewing job applications, planning trips, and analyzing investment portfolios, even claiming at the time that it outperformed “OpenAI’s” Deep Research service.
A few weeks after its launch, Benchmark led a $75 million funding round last April, giving “Manas” a valuation of $500 million, with general partner Chetan Puttagunta joining its board of directors, according to a report published by “TechCrunch” and reviewed by “Al Arabiya Business.”
Chinese reports also revealed previous investments from prominent names, including “Tencent,” “ZhenFund,” and “HSG” (formerly Sequoia China) in an early $10 million funding round.
Despite criticism the company faced when it began charging monthly subscriptions ranging from $39 to $199, which were considered high prices for a service still in the testing phase, “Manas” later announced that it had succeeded in attracting millions of users and exceeded $100 million in annual recurring revenue.
According to the “Wall Street Journal,” “Meta” began negotiations to acquire “Manas” after this rapid growth, with the deal concluding at a value of $2 billion, the same valuation the company was seeking in its next funding round.
For Zuckerberg, who relies heavily on artificial intelligence as a key driver for “Meta’s” future, “Manas” represents a rare example of an AI company generating actual revenue, at a time when investors’ concerns are growing over “Meta’s” massive spending, estimated at about $60 billion, on infrastructure.
“Meta” clarified that it will maintain “Manas” as an independent entity, gradually integrating its technologies within its platforms, including “Facebook,” “Instagram,” and “WhatsApp,” where its smart assistant Meta AI is already available.
However, the deal is not without political complications, as the founders of “Manas” are of Chinese origin and had established the parent company Butterfly Effect in Beijing in 2022 before moving their operations to Singapore in the middle of this year.
This has raised questions in Washington, especially after public criticism from Republican Senator John Cornyn, who attacked Benchmark’s investment in the company, warning against supporting what he described as “America’s biggest competitor in the field of artificial intelligence.”
However, “Meta” confirmed to “Nikkei Asia” that “Manas” will sever any ties with Chinese investors after the completion of the deal, and will also cease all its operations and services within China, in a step aimed at easing the political and regulatory concerns associated with the acquisition.
