The deal values Manus at between $2 billion and $3 billion, although Meta has chosen not to disclose financial terms. Manus, now based in Singapore, did not respond to requests for comment at the time of writing.

The acquisition gives Meta full control of Manus’s technology, which it plans to operate, sell and embed across its consumer and business products, including Meta AI. 

This will help to secure what many in the industry now see as the most valuable layer in AI development, the execution layer, where software agents go beyond conversation to carry out complex tasks on their own.

Manus rose quickly into the global spotlight earlier this year after releasing what it described as a general AI agent. Unlike standard chatbots, the system was designed to make decisions and complete tasks with minimal prompting. 

The product went viral on X and was soon compared to DeepResearch, a benchmark tool in the sector. The company has claimed its agent outperforms that system, helping to drive both attention and controversy.

Behind the attention was rapid commercial growth. Manus became the fastest startup to cross $100 million in annual recurring revenue, reaching a $125 million run rate in under eight months. 

In 2025 alone, its systems processed 147 trillion tokens and powered around 80 million virtual computers, figures that point to unusual scale for a company so young. That pace made Manus one of the most talked-about AI agent startups globally.

Meta’s interest shows a change in strategy. While the company has spent years building open-source foundation models such as Llama, this deal reveals a goal to own proprietary systems that sit on top of those models and actually do the work. 

Autonomous agents that can research, write code and analyse data are now the next battleground, and competition is increasing fast.

The acquisition comes after a year of heavy spending by Meta, including its investment in Scale AI, a deal that valued the data-labelling firm at $29 billion. 

Competitors are not standing still. Microsoft is expanding Copilot, Google is pushing Gemini, and OpenAI is developing DeepResearch.

Manus’s background also adds a geopolitical edge to the deal. Founded in China and backed by its parent company, Beijing Butterfly Effect Technology, the startup was once described as China’s next DeepSeek. 

It later relocated to Singapore, joining a growing number of Chinese tech firms seeking to reduce exposure to Sino-US tensions. Singapore’s neutral stance and trade-friendly policies have made it a preferred base for global expansion.

Beijing had shown interest in supporting Manus, and the company maintains a strategic partnership with Alibaba to collaborate on AI models. 

Meta’s acquisition changes ownership firmly to a U.S. technology giant, a development that is likely to be closely watched in both Washington and Beijing.

The expansion will grow its existing network of 91 facilities across 29 regions and places the Chinese company head-to-head with established giants like Amazon Web Services, Microsoft Azure, and Google Cloud.

Earlier this year, Alibaba pledged ¥380 billion ($53.4 billion) over three years to build AI infrastructure. At its annual Apsara Conference, Chief Executive Eddie Wu signalled the spending will not stop there. “The speed of AI industry development has far exceeded our expectations, and the industry’s demand for AI infrastructure has also far exceeded our expectations,” he told participants.

The highlight of the event was the unveiling of Qwen3-Max, Alibaba’s largest artificial intelligence model so far. Built with more than 1 trillion parameters, it has been designed to handle code generation and operate as an autonomous agent, systems that can pursue goals with limited human direction.

According to Alibaba Cloud’s Chief Technology Officer, Zhou Jingren, the model displayed particular strength in tasks that typically require continuous prompts. Independent benchmarks such as Tau2-Bench showed it surpassed rival offerings including Anthropic’s Claude and DeepSeek-V3.1 in some areas.

Alibaba also presented Qwen3-Omni, a multimodal system developed for immersive applications ranging from smart glasses to intelligent cockpits. This is a drive into consumer-facing AI experiences, particularly in retail, automotive, and wearable technology.

In a further step, the company revealed a partnership with Nvidia to advance physical AI capabilities. Their collaboration will focus on model training, data synthesis, reinforcement learning, and validation for real-world use cases, areas where Nvidia dominates the global chip market.

Alibaba, once known primarily for e-commerce, is now placing AI and cloud services at the centre of its global operations, strengthening a competition that stretches across Asia, Europe, and the Americas.

The company said most of the proceeds, about 80%, will be directed toward strengthening its cloud business, with investments in new data centres, technology upgrades, and improved customer services. 

The remainder will go into pushing Alibaba’s international e-commerce strategy, as the group doubles down on both cloud infrastructure and overseas markets.

According to deal terms, the bond carries a conversion premium of 27.5% to 32.5% above Alibaba’s U.S.-listed shares and matures on 15 September 2032. Investors will have the option of converting into U.S.-listed stock, a move that has raised concerns about potential dilution. 

This worry was seen in New York trading on Wednesday, where the stock dropped 2.2%. In Hong Kong, however, the shares reversed earlier losses to close 2.3% higher at HK$146.10. Year to date, Alibaba’s stock has surged more than 70% in both markets.

CEO Eddie Wu noted the role of artificial intelligence in the group’s future growth during a recent earnings call, saying: “Our investments in AI have begun to yield tangible results. We are seeing an increasingly clear path for AI to drive Alibaba’s robust growth.”

The funding comes as Alibaba executes a commendable AI strategy. The firm has pledged ¥380 billion ($53.37 billion) over three years to strengthen its place in the global AI infrastructure race, rolling out products such as the Tongyi Qianwen 2.0 large language model and AI-powered tools for cloud, logistics, and retail.

This is not Alibaba’s first time tapping the bond market. In July, the company raised $1.5 billion through an exchangeable bond, following a $5 billion convertible bond deal last year.

On the same day as Alibaba’s announcement, China Pacific Insurance also revealed plans for a HK$15.55 billion ($2 billion) zero-coupon convertible bond, underlining the growing appeal of this fundraising route.

Asia-Pacific markets have already seen $27.8 billion worth of convertible bond issuance in 2025, only slightly below last year’s level, which was the strongest in three years. Convertible bonds remain attractive for growth-focused companies as they combine low interest costs with the potential for equity gains.

Alibaba’s investment stresses the scale of capital Chinese technology firms are now deploying to compete globally.

With Amazon Web Services, Microsoft Azure, and Google Cloud topping the sector, Alibaba’s latest fundraising shows it is unwilling to cede ground in what has become one of the fiercest technology battles worldwide.

The announcement coincided with the Chinese government’s renewed commitment to boosting AI and other emerging technologies, so as to enhance its competitiveness in the global tech race.

The QwQ-32B model, developed by Alibaba’s AI division, Qwen, is designed to rival some of the most powerful AI models available. Despite having 32 billion parameters, it reportedly delivers performance comparable to DeepSeek’s R1, a model with 671 billion parameters. 

Qwen stated via X that QwQ-32B is great in mathematical reasoning, coding, and general problem-solving, placing it among top AI models like OpenAI’s o1 mini and DeepSeek’s R1.

The model is accessible through Qwen Chat, Alibaba’s AI-powered chatbot service, which allows users to choose from multiple AI options, including the latest Qwen2.5-Max, the most advanced model in the Qwen lineup. 

In a move to encourage wider adoption and innovation, Alibaba has made QwQ-32B available as an open-source model on platforms such as Hugging Face and ModelScope under the Apache 2.0 license.

Government Backing and Market Response

Alibaba’s announcement followed a policy statement from the Chinese government pledging more support for industries such as AI, humanoid robots, and 6G telecommunications. 

This shows China’s strategy to build an AI-driven economy that extends beyond research and into real-world applications.

“China is rapidly building an application-driven AI ecosystem that isn’t just about research — it’s about immediate, tangible economic impact,” said Sun Wei, principal AI analyst at Counterpoint Research. 

Analysts believe these government-backed initiatives will accelerate AI adoption across industries, particularly in government agencies and smaller enterprises.

The market reacted positively to Alibaba’s latest AI development, with the company’s shares climbing to HK$140.5. The announcement also had a ripple effect on China’s tech stock index, which saw notable gains.

Alibaba’s AI Investment Strategy

Alibaba has committed to investing over 380 billion yuan ($52 billion) in AI infrastructure, including data centres, over the next three years. 

This investment shows its ambition to remain a leader in the field while competing with other players in China’s AI space.

Meanwhile, DeepSeek’s R1 model, which uses a sparse mixture-of-experts (MoE) transformer approach, continues to attract attention. In activating only a fraction of its 671 billion parameters per task, it provides a cost-effective alternative to models requiring more computing power.

These platforms usually boast an extensive catalogue of products and the lowest of prices. At first glance, this seems like a win for the average consumer, especially with the current rise in inflation, but beneath the surface, these digital platforms pose a serious threat to our economy, local businesses, and long-term economic sustainability.

The sudden influx of these platforms is somewhat suspicious especially as they do not have any offices/representation in the country.

This means aside from collecting money from Nigerians, they have no substantial contribution to the economy via taxes, job creation etc.

The growing trend of these companies expanding into new markets, especially in developing nations like ours, as existing ones become less accessible, is concerning.

For instance, Temu‘s entry into Nigeria aligned with mounting challenges faced by its parent company, PDD Holdings, in international markets.

Vietnam issued a threat to ban the platform until it registers with local authorities. The app was also removed from major stores in Indonesia to protect domestic retailers.

Additionally, the company has faced lawsuits for violating customer privacy, allegedly using its e-commerce platform to acquire and sell user data.

Another lawsuit was issued against the company for sending marketing texts to people on the National Do Not Call list.

With all of these, one could conclude that the company is only trying to move to more lenient markets like Nigeria where they can be less accountable, and they would be right.

After all, unlike homegrown platforms such as Jumia, Konga, and Glovo, which invest in local supply chains, create jobs, and contribute taxes, companies like Temu operate with minimal local engagement.

So, what are the results of the infiltration of these foreign e-commerce platforms in Nigeria?

The Silent Strangulation of Nigerian SMEs

From rising production costs to unpredictable government policies, running a business in this economy is already a Herculean task.

The infiltration of the market with these ultra-cheap imports, often of questionable quality marketed by these platforms means that small and medium-sized enterprises (SMEs) who are already struggling with profitability, will bear the brunt.

Local businesses will not be able to compete with products priced far below market rates, especially when those prices are backed by massive tariffs.

The result? Shrinking profit margins, declining local production, and, ultimately, job losses. The irony is painful. While we celebrate the convenience of these platforms, we might, in fact, be funding the slow death of our own economy.

Hidden Cost of Cheap Deals: A Digital Economy That Doesn’t Benefit Nigerians

The Nigerian government has been vocal about its push for a digital economy, but what good is it if the wealth it generates never stays within our borders?

Non-resident e-commerce platforms enjoy free rein, making money off Nigerians without contributing meaningfully to Nigeria’s economy; isn’t that a major hidden cost of cheap deals?

This leaves the government with fewer resources to invest in infrastructure, social services, and local business support.

Meanwhile, resident e-commerce companies like Konga, Glovo, and Jumia, despite facing their own challenges, play by the rules.

They hire Nigerians, collaborate with local vendors, and pay taxes. These companies understand the nuances of our economy and strive to work within its realities, rather than exploit them.

The Case for Protecting the economy

Other nations fiercely protect their local industries. Why should Nigeria be any different?

We must rethink our policies to ensure that companies benefiting from Nigerian consumers also contribute to Nigeria’s economy.

This includes enforcing fair taxation on digital commerce, strengthening local manufacturing, and incentivizing consumers to support homegrown businesses to achieve long-term economic sustainability.

*Oluwaseun Olajide, a senior communications expert writes from Lagos

The Chinese eCommerce giant disclosed the investment figure on Monday, following an earlier statement in which it hinted at its intentions without specifying an amount. 

The company reported revenue of 280.15 billion yuan for the quarter ending December 31, slightly above analysts’ expectations.

Alibaba stated that this investment is more than its total spending on AI and cloud computing over the past decade. The company has started the year on a strong note in China’s AI race, attracting investors through key business deals. As of the last market close, its stock had surged more than 68% this year.

China’s technology sector has seen a wave of heavy investments in artificial intelligence. ByteDance, the parent company of TikTok, has allocated over 150 billion yuan in capital expenditure for the year, a large portion of which is focused on AI, according to sources familiar with the matter.

Eddie Wu, Alibaba’s CEO, recently noted the company’s strong performance, “The company continues to invest in innovation and technological advancement to drive future growth.” This announcement is expected to further bolster Alibaba’s position as a key player in the global AI and cloud computing industry.

Competition in the sector is increasing and technology firms worldwide are pushing up their investments in AI and cloud infrastructure. 

This latest financial commitment will enable Alibaba to gain more ground in China’s AI-driven environment while responding to the dynamic demands of the digital economy.

This uptick follows a prolonged slump, with foreign smartphone shipments falling for four consecutive months before December’s modest rebound. 

In November alone, shipments plummeted by 47.4% year-on-year, dropping to 3.04 million units from 5.77 million. 

The current increase brought the total number of foreign smartphone shipments to 3.74 million units, compared to 3.72 million in the same period the previous year.

Apple was particularly affected, struggling with economic stress, reduced consumer spending, and growing competition from local brands like Huawei.

Huawei has strengthened its market presence, recording a 24% increase in smartphone shipments in the same quarter. The company now holds a 17% market share, closely trailing Apple’s 13.1 million units sold in China. 

Huawei’s resurgence has been driven by the introduction of smartphones with locally produced chipsets, which have interested consumers, especially those who favour homegrown technology.

Apple, in an effort to retain its foothold in China, has partnered with Alibaba to integrate artificial intelligence features into iPhones sold in China, leveraging Alibaba’s technology to better tend to local preferences. However, this initiative remains subject to regulatory approval.

Analysts are cautious about Apple’s prospects in the Chinese market nonetheless. The upcoming iPhone SE4 is not expected to drive high sales, as previous SE models have had limited impact.

Again, speculation that the iPhone 17 series may rely entirely on eSIM technology is not sitting well with consumers, given China’s limited carrier support for eSIM.

Foreign smartphone brands have also been struggling with economic issues. A downturn in consumer spending, coupled with the economic slowdown, has dampened demand. 

In November, foreign smartphone shipments in China saw a steep decline, plummeting by 47.4% year-on-year to 3.04 million units. This was the fourth consecutive month of declining sales for non-Chinese brands.

Apple responded to these difficulties with a rare four-day promotional campaign, offering price reductions of up to 500 yuan (£55) on its flagship devices.

However, the effectiveness of such short-term discounts remains uncertain, especially as Huawei continues to gain traction in the premium segment.

According to the 2024 Global Midyear Advertising Forecast, the increase is attributed to higher digital advertising spend, recovery in key markets like China, and the growing influence of automation and other technologies. 

The growth forecast for 2024 has been revised upwards to 7.8%, a jump from the previous estimate of 5.3%.

The United States and China are the main drivers of the industry’s expansion, together contributing over half of the global advertising revenue. In 2024, the U.S. market is forecast to generate $365.9 billion, a 5.8% rise from the previous year. 

Meanwhile, China’s revenue is projected to grow to $199.4 billion, surpassing earlier expectations.

These two countries alone will account for an incremental $44.5 billion in 2024, dwarfing the combined growth of $27.5 billion from all other markets. Excluding the contributions of the U.S. and China, global advertising growth for 2024 is estimated at 6.9%.

Digital Advertising

Digital advertising continues to account for an estimated 73% of total revenue by the end of 2024. This trend is expected to continue, with digital platforms —including streaming services and online publications — projected to capture 82% of the market by 2025. 

The segment is forecast to grow 12.4% in 2024 and 10% in 2025, far outpacing traditional formats such as print and radio.

While television, including streaming services, is projected to grow at 2.4% on a compound basis through 2029, print advertising is set to decline further, with global revenues expected to drop by 4.5% in 2024 and 3% in 2025. Audio advertising is predicted to remain stagnant over the same period.

Regional Highlights

China is expected to see a 13.5% increase in advertising revenue in 2024, reaching $204.5 billion. This growth is partly attributed to initiatives aimed at boosting consumer confidence and spending. 

Meanwhile, the UK, Europe’s largest advertising market, is forecast to grow by 8.3% in 2024, contributing $53.2 billion to global revenues.

Industry Implications

Major digital platforms such as Google, Meta, ByteDance, Amazon, and Alibaba will benefit the most from this growth, collectively capturing more than half of the global advertising revenue. 

These platforms have become integral to both small and large advertisers, offering sophisticated tools that target a wide range of marketing needs.

In contrast, traditional advertising agencies face challenges in capturing a good share of this expanding market, as clients increasingly favour digital platforms. 

Even with economic uncertainties in developed markets like the U.S. and UK, the global advertising sector shows no signs of slowing, underpinned by innovation and changing consumer behaviours.

Nigerian Perspective

In Nigeria, advertising expenditure has mirrored global trends, with companies ramping up their budgets to enhance brand visibility and customer engagement. 

Despite a 35.9% year-on-year growth between 2021 and 2022, spending dipped slightly in 2023 as businesses adopted a more cautious approach due to economic limitations.

The Africa’s Business Heroes event brought together 40 entrepreneurs, including top 10 Heroes, finalists, and partners across Africa. Participants engaged in innovative activities at Alibaba’s headquarters during their visit, gaining insights to enhance their entrepreneurial endeavours on the continent.

The Heroes, spanning cohorts from 2019 to 2023, participated in various activities that explored facets of the digital economy, such as cloud computing, AI-driven logistics, and e-commerce villages. 

ABH Heroes participated in activities designed to enhance their businesses, including exploring cloud computing, AI logistics, and e-commerce strategies. The trip facilitated collaboration and knowledge exchange among participants and Alibaba leaders.

Workshops, site visits, and exchanges with business leaders from Alibaba and fellow participants provided new knowledge and perspectives to overcome challenges and scale their businesses.

Diarra Boussou, Founder & Creative Director of Diarrablu and ABH 2020 top 10 Hero, expressed gratitude for the experience, emphasizing the inspiration derived from meeting top African entrepreneurs and gaining insights into Alibaba’s visionary approach.

In response to growing interest, Africa’s Business Heroes has extended the deadline for 2024 entries to June 9, offering selected candidates access to training, mentorship, and networking opportunities. A total of $1.5 million in grant funding will be distributed among the top 10 finalists, with the first prize winner receiving $300,000.

To facilitate broader participation, ABH has hosted information sessions and community events across Africa, enabling an energetic entrepreneurial community. 

Events have been conducted in partnership with local organizations in countries like South Africa, Kenya, and Nigeria, with additional sessions planned for Egypt, Ethiopia, Rwanda, and Senegal.

Eligibility 

Entrepreneurs from all 54 African countries are invited to apply, regardless of sector, age, or gender, through the ABH website. 

How to Apply

Additionally, individuals are encouraged to nominate entrepreneurs creating impactful solutions to challenging issues across the continent. Applications and nominations can be submitted in English or French via the website.