Why Meta Is Buying Singapore-Based AI Startup Manus

SPEAKER_1 (0:00)

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Luke Vargas (0:19)

Meta looks to Asia as it makes a more than $2 billion AI acquisition. We've got the scoop. Plus tensions in the Middle East, Saudi Arabia and the UAE square off while protests break out in Iran. And in the US., why politicians on both sides of the aisle are scrambling to act on affordability.

Meridith McGraw (0:38)

This is going to be a big problem for Republicans moving forward. It's something that Democrats are really centering their campaigns around.

Luke Vargas (0:47)

It's Tuesday, December 30th. I'm Luke Vargas for The Wall Street Journal. And this is What's News in your feed once a day over the holidays with the top headlines and business stories moving the world today. We are exclusively reporting that Meta has agreed to buy Singapore-based AI startup Manus in a deal worth more than $2 billion. But it's not the price tag turning heads. Instead, the purchase marks a rare example of a major US tech company buying a company with Chinese roots and developed in Asia's startup ecosystem. Journal reporter Kate Clark told us what made Manus an attractive target.

SPEAKER_5 (1:29)

Meta is acquiring Manus to get further into the AI agent game, which is AI that can complete tasks for you. Manus has some really impressive technology there that sort of burst onto the scene in the past year or so. And this is a path that a lot of companies want to go down because this is AI that human beings actually want to use. And Meta sees a huge opportunity for their business to use Manus and not just Manus' technology, but also the people that created this technology to really get ahead here.

Luke Vargas (1:55)

And Kate says Meta has made AI a huge focus this year, with a notable example being its investment in Scale AI this summer, a deal that saw the startup's founder Alexander Wang join Meta as its chief AI officer. Well, it's been another busy trading day for metals, with silver futures rebounding after a steep drop yesterday. Gold, platinum, and copper are also climbing. US stocks are edging lower, though they remain close to record highs. And coming up at 2pm Eastern, the Fed will release the minutes of its December policy meeting when it cut rates by a quarter point. Investors will be listening for how strongly those who disagreed with that move pushed back. The Fed will next meet in late January, with most traders anticipating a pause in rate cuts. Tensions are escalating between Saudi Arabia and the United Arab Emirates over the situation in Yemen, where the Gulf powers are supporting rival sides in the country's civil war. Overnight, the Saudi military bombed an Emirati weapon shipment arriving at a Yemeni port. And today, Riyadh warned the UAE it had 24 hours to leave Yemen and end support for forces in the country. The UAE said it would withdraw its remaining forces, though it's not immediately clear whether troops have begun to leave or whether that would resolve the crisis. The dispute between two key US security partners could create complications for Washington. President Trump, who was joined in Florida by Israeli Prime Minister Benjamin Netanyahu yesterday, has threatened new attacks on Iran should the country try to replenish its missiles or restart its nuclear program after US strikes this summer.

SPEAKER_6 (3:40)

I hope they're not trying to build up again because if they are, we're going to have no choice but very quickly to eradicate that buildup.

Luke Vargas (3:48)

Israeli officials and independent analysts say Iran is reconstituting its ballistic missile program and Netanyahu is eyeing the resumption of military operations against the country. Meanwhile, Iran's regime is facing new internal pressure. Protests have broken out in response to a worsening economic crisis that's seen the Iranian currency shed 60% of its value since June's war with Israel. That's undermined people's savings and raised costs as inflation grips the country, while water and power shortages add to the crisis. And LA is embracing rent control. Starting in February, rents on most of the city's apartments will only be able to increase by 1 to 4% a year, down from the current limit of 3 to 8% that dates back decades. Mayor Karen Bass, a Democrat, backed the changes which come amid a deepening national debate over the effects of price controls.

SPEAKER_7 (4:49)

And let me just say that we all know that the problem facing the nation, and most certainly facing our state and city, is affordability. And at the core of affordability is the price of housing.