China Blocks Meta’s $2b Acquisition Of Ai Startup Manus
Meta is in a pickle like someone who booked a vacation only to learn that their boss won’t grant their PTO request. A Chinese regulator yesterday blocked its acquisition of the AI startup Manus, halting a $2 billion corporate tie-up that was already underway.
Meta acquired Manus after the China-founded AI company moved to Singapore last year. Experts say China’s nixing of the deal is aimed at curbing the transfer of homegrown AI know-how to the US—and discouraging other AI companies from relocating abroad in order to seek foreign investment.
Minus Manus
China has reportedly banned two Manus top executives from leaving the country. Meanwhile, other Manus employees moved into Meta’s Singapore office and reportedly already began learning to use the coffee machine working alongside Meta staff.
Losing Manus would be a hit to Meta as the Facebook parent counted on the deal to bolster its own AI competitiveness:
- Manus’s AI agents wowed users last year by completing multi-step tasks like research and data analysis.
- The startup surpassed $100 million in annual subscription revenue last December.
Meta said yesterday the purchase was legal and that it hopes to resolve the issue.
Looking ahead: The deal’s status could come up when President Trump and China’s leader Xi Jinping meet next month to talk trade and geopolitics.—SK
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