Meta Platforms Inc. (NASDAQ:META) is accelerating its push to build practical, revenue-generating artificial intelligence tools as it looks to capitalize on years of heavy AI investment.
The company has agreed to acquire Manus, a Singapore-based AI agent company with roots in China, as it seeks to leverage its substantial AI spending into a larger business.
The Facebook and Instagram parent valued Manus at more than $2 billion and moved quickly to finalize the agreement.
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Meta plans to keep selling and operating the Manus service while weaving its agent technology into Meta products, Bloomberg reported on Tuesday, citing sources familiar with the matter.
The company also bought out existing investors, which include backers such as Tencent Holding Ltd (OTC:TCEHY), ZhenFund, and HSG.
It plans to end Manus’ services and operations in China after the transaction.
From Chatbots To “Do-The-Work” AI
Meta targets Manus’ agent capabilities software that can carry out tasks like screening resumes, building trip itineraries, and analyzing stocks with minimal supervision as it expands beyond chatbots into more “do-the-work” AI tools.
Manus previously generated an annual revenue run rate of about $125 million from business subscriptions.
The acquisition follows Manus’ earlier funding round that valued the company near $500 million.
Strong Earnings Support Meta’s AI Push
The acquisition comes on the heels of strong third-quarter results.
Meta posted diluted EPS of $1.05, reflecting a one-time, non-cash income tax charge of $15.93 billion. On an adjusted basis, earnings came in at $7.25 per share.
Revenue totaled $51.24 billion, topping the $49.38 billion consensus estimate and rising 26% from a year earlier.
For the fourth quarter, Meta guided revenue to a range of $56 billion to $59 billion, compared with the Street estimate of $57.21 billion.
Meta stock has gained 14% year-to-date, lagging S&P 500 index’s over 17% returns.
META Price Action: Meta Platforms shares were up 1.29% at $667.19 at the time of publication on Tuesday, according to Benzinga Pro data.
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