Meta Acquires AI Startup Manus Amidst Antitrust Scrutiny in Italy

Meta is intensifying its AI strategy by acquiring Manus, a Singapore-based startup specializing in autonomous agents. Simultaneously, the Italian Antitrust Authority is scrutinizing WhatsApp for potential anti-competitive practices related to AI chatbot access, marking a complex landscape for Meta's AI ambitions.

Meta's Dual Path: AI Acquisition and Regulatory Challenges

Meta, under Mark Zuckerberg, is aggressively pursuing artificial intelligence advancements, but faces hurdles. The acquisition of Manus, potentially valued at over $2 billion, is a significant move. However, in Italy, antitrust regulators are challenging Meta's WhatsApp policies that could exclude rival AI chatbots.

These two events are connected by a common thread: the competition for control over generative AI, its distribution channels, and user access.

Manus Acquisition: A Strategic AI Play

Meta's acquisition of Manus, originally founded in China and later moved to Singapore, underscores the global nature of the AI race. Manus is backed by notable investors, including Tencent and Benchmark. The deal signifies Meta's commitment to advanced AI and its recognition of Asian technological prowess.

The Significance of Manus

This acquisition is notable as a rare instance of a U.S. tech giant acquiring an Asian technology company, signaling a shift in the global AI landscape towards greater Asian influence.

Meta plans to integrate Manus's services into its product ecosystem. The Manus team, comprising approximately 100 individuals, will join Meta, with CEO and co-founder Xiao Hong reporting to Meta's COO, Javier Olivan.

Manus's AI Agent: A Leap Forward

Manus gained recognition in early 2025 for its AI agent, designed to autonomously make decisions and execute tasks with minimal instructions, setting it apart from traditional chatbots. The AI agent can handle tasks like resume analysis, travel planning, financial decision support, and digital automation without constant supervision.

AI Agent Capabilities

Manus's AI agent represents a shift towards more sophisticated AI, capable of performing operational activities and automating digital tasks without continuous oversight. This paradigm of AI agents is seen as a significant evolution beyond simple conversational AI by many enterprise software companies.

Manus claims its AI agent outperforms OpenAI's DeepResearch, supported by strategic collaborations with Alibaba in AI model development and backing from Beijing.

Financial Implications and Market Reaction

Manus brings a revenue stream to Meta, generating $125 million through subscriptions for its AI agent. This is particularly relevant as Meta invests heavily in AI infrastructure, with Zuckerberg committing up to $600 billion in U.S. infrastructure investments over the next three years.

Meta's Investment in AI

Meta's substantial investments in AI have sparked mixed reactions, with some investors expressing concerns about short-term returns. Meta's stock experienced a slight dip on December 29, closing down by 0.69%, but remains strong year-over-year. Pre-market trading indicates a slight recovery.

Antitrust Scrutiny in Italy

While Meta expands its AI capabilities globally, it faces regulatory challenges in Italy. The Italian Antitrust Authority has temporarily suspended WhatsApp Business's new terms, which could have restricted competing AI chatbots from operating on the platform. The authority is concerned that these clauses could exclude alternative operators, potentially giving Meta AI a monopoly on WhatsApp.

Concerns Over WhatsApp's AI Integration

The antitrust action aims to prevent irreversible damage in the emerging AI market. Regulators fear that restricting access to a platform with millions of users could stifle competition and freeze the market.

According to the Antitrust Authority, the new clauses risked excluding alternative operators from the market, effectively leaving Meta AI as the only generalist assistant integrated into WhatsApp.

The measure does not yet address the final merits but aims to avoid irreversible damage in a nascent market, where time is crucial. In other words: if you close access to a platform with millions of users today, tomorrow you may find yourself with an already "frozen" market.

The decision is a signal that regulators are paying close attention to how tech giants integrate AI into their platforms and the potential impact on competition.

Below is a summary of Meta's key financial data:

Here's a breakdown of Manus's financial performance:

The following table highlights key milestones in Meta's AI development and acquisition strategy:

Below is a comparison of the AI agent capabilities of Manus and OpenAI's DeepResearch, according to Manus:

The table below outlines the concerns raised by the Italian Antitrust Authority regarding WhatsApp's new terms of service:

A summary of the investors backing Manus before its acquisition by Meta is shown below: