WSJ What’s News – “Why Meta Is Buying Singapore-Based AI Startup Manus”

Date: December 30, 2025
Host: Luke Vargas, The Wall Street Journal

Episode Overview

This episode delves into Meta’s landmark acquisition of Singapore-based AI startup Manus for over $2 billion. The discussion explores why Manus stood out to Meta among Asian startups, the broader trend of US tech companies seeking innovation in Asia, and the implications for the fast-evolving AI agent market. The episode also addresses the increased focus on affordability in US politics and other top global headlines, with expert perspectives on how policymakers are responding to economic pressures.

Key Discussion Points & Insights

1. Meta’s Acquisition of Manus: Significance & Rationale

[01:02–02:10]

• Deal Overview:

  • Meta has agreed to acquire Manus, a Singapore-based AI startup, for over $2 billion.
  • It’s notable as a rare purchase of an Asian, Chinese-rooted company by a major US tech giant.

• Why Manus?

  • Kate Clark (WSJ Reporter):
    “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.” (01:44)
  • Meta sees Manus’s tech—and its creators—as keys to gaining a competitive edge in AI, signaling a shift toward practical, user-focused AI solutions.

• Broader Trend:

  • Meta’s increasing focus on AI in 2025, referencing their summer investment in Scale AI and recruitment of Alexander Wang as Chief AI Officer.

2. Global Headlines Roundup

[02:10–06:20]

a. Commodities & Markets

• Busy day in metals trading:
  • Silver rebounds, gold/platinum/copper up; US stocks edge lower but near record highs.

b. Middle East Tensions

• Escalating conflict between Saudi Arabia and UAE in Yemen, threatening stability and complicating US foreign policy.
• US and Israeli reassessments amid Iranian arms developments and renewed internal pressures within Iran due to currency collapse and inflation.
  • President Trump (on Iran):
    “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.” (03:55)

c. US Urban Policy

• Los Angeles will impose stricter rent control as of February, part of a larger national debate on affordability and price controls.

3. Affordability as a US Political Flashpoint

[06:20–11:07]

• Election-Year Dynamics:

  • Affordability is a key campaign theme for both parties, particularly with the public’s persistent unease about cost of living.
  • Greg Ip (WSJ Chief Economics Commentator):
    “Affordability is a somewhat vague word. It doesn't just refer to the cost of what you buy, but also the income, the resources you have to buy those things... Incomes are growing faster than prices. The reason I think it has become a buzzword is that a lot of folks were shocked by how much prices went up in the initial aftermath of the pandemic.” (06:58)
  • Voters expect new policies and relief, linking perceptions to current leadership.

• Economic Realities vs. Political Messaging:

  • Greg Ip: “Trump was happy to campaign on the affordability crisis… Saying things like the price of bacon had gone up four or five times. That was not true… but you live by the sword, you die by the sword. People are saying, wait a minute, why are prices still going up? And they're saying, Mr. Trump, this is your economy now, where’s the beef?” (08:06)

• Voter Sentiment:

  • Meredith McGraw (WSJ White House Reporter):
    “President Trump talks all the time about how prices are coming down or America's economy is the envy of the world. But that just doesn't line up with how a majority of Americans actually feel day to day... This is going to be a big problem for Republicans moving forward.” (08:49)

• Policy Options:

  • Greg Ip:
    • Raising tariffs wouldn’t help; in fact, halting or rolling them back would lower inflation.
    • Points to new Republican “mega bill” offering targeted tax cuts (on tips, for seniors, vehicle leases, state/local taxes), and regulatory and aid tweaks.
  • Meredith McGraw:
    • Possible additional tax refunds; focus on investment and regulatory changes. “When we'll actually see that have any notable change or impact of how voters feel about anything, I think is yet to be seen.” (10:28)

Notable Quotes

• On Meta’s AI Ambitions:

  • “This is AI that human beings actually want to use. And Meta sees a huge opportunity... to use Manus and not just Manus technology, but also the people that created this technology to really get ahead here.”
    — Kate Clark (01:44)

• On Affordability Buzzword:

  • “If you actually look at the data, there isn't a lot going on with affordability to freak out about… People's incomes are growing faster than prices. The reason I think it has become a buzzword is that a lot of folks were shocked by how much prices went up in the initial aftermath of the pandemic.”
    — Greg Ip (06:58)

• On Political Challenge:

  • “President Trump talks all the time about how prices are coming down… but that just doesn't line up with how a majority of Americans actually feel day to day.... This is going to be a big problem for Republicans moving forward.”
    — Meredith McGraw (08:49)

Timestamps for Key Segments

• [01:02–02:10]: Meta’s acquisition of Manus; rationale and implications
• [02:10–03:55]: Financial/market news; metals, Fed policy, global tensions
• [03:55–05:40]: Middle East developments and Iran protests
• [05:40–06:20]: LA rent control
• [06:20–11:07]: In-depth segment on affordability as a campaign theme, including expert and on-the-ground perspectives

Tone & Style

The episode maintains the Wall Street Journal’s professional, data-driven tone, blending clear explanations with expert commentary and direct quotes. The pace is brisk, with an emphasis on the underlying forces shaping economic policy and tech sector dynamics.

Summary Takeaway

Meta’s acquisition of Manus underscores how the AI race is going global, with US tech giants aggressively sourcing talent and innovation from Asia’s startup scene. Meanwhile, in the US, surging concerns about affordability are emerging as a major political challenge for both parties, despite modest gains in income and stable inflation. Policymakers are caught between economic realities, public expectations, and the relentless pace of technological change.