Meta’s Strategic AI Acquisitions Fuel Growth Amid Regulatory Scrutiny

Meta Platforms is making a multi-billion dollar statement in the artificial intelligence arena. The social media and technology giant has confirmed a deal to acquire AI agent startup Manus for a sum that could reach $3 billion. This move is a key component of an unprecedented investment push by CEO Mark Zuckerberg, aimed at securing a dominant position in the AI race against competitors like OpenAI and Google. The acquisition underscores a broader strategy: Meta is not merely purchasing technology but is systematically consolidating top talent and critical infrastructure.

The market's high expectations for Meta's AI strategy are reflected in its $1.64 trillion valuation. Shares closed at $650.41 on Friday, marking a 1.47% decline for the session. Analysts remain broadly bullish, with 92% of 71 covering analysts maintaining a "Buy" rating. The average price target sits at $822.30, suggesting a potential upside of over 26%. From a technical perspective, the equity must defend the support level tested on Friday at $643.50. Investor activity shows a mixed picture; while institutions like Financial Partners Group have recently increased their holdings, Meta's Chief Operating Officer, Javier Olivan, sold shares worth approximately $1.59 million.

The aggressive capital allocation appears to be yielding results. Meta's AI-driven advertising product, Advantage+, achieved an annual revenue run rate of $60 billion in the third quarter of 2025. This figure represents a tripling of its performance since the first quarter of the year.

The Manus Acquisition and Its Implications

Confirmed on Saturday, the Manus deal brings Meta a startup with over $100 million in annual recurring revenue. Manus's technology is slated for direct integration into WhatsApp and the broader Meta AI platform. In a dual-strategy approach, the Manus subscription service will continue to operate independently, opening additional revenue streams for the parent company.

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A particularly sensitive aspect of the deal is Manus's corporate history. The company was originally founded in China but relocated its headquarters to Singapore in mid-2025. This background is likely to attract scrutiny from U.S. regulatory bodies during the acquisition review process.

A Pattern of Consolidation: The Scale AI Investment

The purchase of Manus is not an isolated event. It follows closely on the heels of Meta's substantial $14.3 billion investment for a 49% stake in data provider Scale AI. This strategic move had immediate ripple effects across the industry. Subsequently, Scale AI reduced its workforce by 200 employees, or 14% of its staff. Furthermore, both OpenAI and Google terminated their partnerships with the data firm. In a significant talent acquisition, Scale AI's CEO, Alexandr Wang, transitioned to lead Meta's superintelligence division.

Challenges on the Horizon

Despite the aggressive expansion, Meta faces significant headwinds. The U.S. Virgin Islands has filed a lawsuit alleging deceptive advertising practices. Separately, Instagram head Adam Mosseri acknowledged over the weekend that 2025 was dominated by "AI slop"—a term for low-quality, AI-generated content. He identified content authentication as a central challenge for 2026.

All eyes are now on the upcoming earnings call scheduled for January 28. The integration of Manus and the restructuring at Scale AI will be central topics of discussion. The financial community awaits further details on how these strategic moves will shape Meta's trajectory in the intensifying battle for AI supremacy.