Meta’s $2 billion acquisition of AI startup Manus, initially hailed as a move to “scale this service to many more businesses,” is facing early headwinds as some existing customers express distrust and opt for alternatives. This skepticism highlights a broader challenge for Meta as it navigates the highly competitive and rapidly evolving artificial intelligence landscape, aiming to challenge established giants like OpenAI, Google, and Anthropic.
Manus, a general-purpose AI agent developer founded in China and later relocated to Singapore, launched its customizable AI agent last year, capable of executing complex tasks from market research to coding and data analysis. However, for some, the acquisition has sparked concerns about data privacy and Meta’s business practices.
Seth Dobrin, co-founder and CEO of Arya Labs, a developer of “world models,” stated that while he previously favored Manus’ transparent service terms, he now lacks confidence in Meta’s data handling. “I don’t want to engage with a company who I don’t feel comfortable with how they’re going to use data,” Dobrin told CNBC, expressing his disappointment with the deal.
Meta, which derives the vast majority of its revenue from advertising, announced the acquisition was intended to accelerate AI innovation for businesses and integrate advanced automation into its products, including its Meta AI assistant. Manus, in a blog post on the day of the deal, reported reaching millions of paying customers and a revenue run rate exceeding $125 million, assuring customers that operations would continue from Singapore with minimal disruption.
Despite these assurances, Dobrin is not alone in his apprehension. Karl Yeh, co-founder of consulting firm 0260.AI, which advises startups on AI integration, has stopped using Manus and advised his clients to do the same. “Will the data policies of Meta apply to Manus? I would assume it will eventually,” Yeh noted, citing data privacy as a primary concern. He also expressed uncertainty about Manus’ future integration into Meta’s AI roadmap, leading him to explore alternatives like Genspark for greater certainty.
Meta has not provided further comment beyond its initial blog post, which expressed excitement about welcoming the Manus team and leveraging their technology.
**Seeking Strategic Clarity in AI**
Meta’s aggressive pursuit of AI capabilities includes a reported $14 billion investment to acquire talent and a stake in Scale AI. However, unlike its primary competitors, Meta has yet to solidify a clear, long-term enterprise AI strategy. The company’s stock has seen a decline following CEO Mark Zuckerberg’s acknowledgment of escalating AI costs, with analysts projecting substantial increases in AI spending across the industry.
Flo Crivello, CEO of Lindy, a competitor to Manus, observed an initial surge in user interest following Meta’s acquisition announcement, attributing it to increased market awareness. Crivello suggests Meta’s acquisition strategy may be more focused on serving small businesses, a demographic crucial to its advertising revenue, rather than large enterprise clients. He anticipates Meta may take considerable time to fully integrate and define Manus’ role within its broader ecosystem.
Meta’s track record in the enterprise sector outside of advertising has been mixed, with the discontinuation of its Workplace communication platform and the cessation of its Portal video calling devices. The company also recently announced the sunsetting of its Workrooms VR app, signaling a strategic pivot away from virtual reality towards artificial intelligence.
Navrina Singh, founder and CEO of Credo AI, believes that large enterprises, particularly in regulated industries like healthcare and financial services, are prioritizing AI deployments built on models from OpenAI and Anthropic, typically hosted on cloud platforms from Microsoft or Amazon, where trust and security are paramount.
An area where Meta has demonstrated success in the business realm is through WhatsApp, its messaging platform. WhatsApp for Business has become a vital channel for customer engagement, with projections indicating significant revenue potential. Meta CFO Susan Li has highlighted business messaging and AI-driven lead generation and sales as key growth areas.
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