Core Viewpoint - Manus has withdrawn from the Chinese market to focus on international expansion, citing operational efficiency adjustments and a shift in strategy towards context engineering for product iteration [1]. Summary by Sections Technical Insights - Manus will emphasize context engineering, leveraging memory and processes for rapid product iteration, focusing on improving training efficiency rather than training new models [1][3]. - The importance of long context (Lossless Long Context) in AI-native products is highlighted, as it enhances personalized interactions and utilizes user interaction history effectively [2]. Lessons Learned - The founder reflects on past experiences with Peak Labs, where the decision to develop a proprietary model became irrelevant after the emergence of advanced models like OpenAI's GPT-3, underscoring the significance of context learning [3]. - Manus has opted to utilize open-source foundational models for training end-to-end agents, avoiding the pitfalls of developing a base model from scratch [3]. Market Challenges - Despite the strategic shift, Manus faces limitations compared to OpenAI's ChatGPT Agent, which benefits from proprietary model advantages and end-to-end training for complex tasks [4]. - The competitive landscape is challenging, with the agent market experiencing significant homogenization and unclear business models, necessitating continuous optimization and exploration of differentiated strategies for Manus [4].