Meta faces China probe over acquisition of AI agent startup Manus
Chinese authorities are reviewing Meta’s $2 billion acquisition of artificial intelligence startup Manus for possible technology control violations, the FT reported on Tuesday.
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China said it would launch an investigation on Thursday Meta$2 billion acquisition of artificial intelligence startup Manus to assess compliance with export control laws.
Meta acquired Singapore-based Manus last month as the US tech giant looks to integrate advanced automation into its consumer and enterprise products.
Terms of the acquisition were not disclosed, but the Wall Street Journal reported According to sources with knowledge of the acquisition, the deal was completed for over $2 billion.
According to the statement translated by Google, China’s Ministry of Commerce said it will conduct an assessment and investigation into how the acquisition complies with laws and regulations on export controls, technology imports and exports, and overseas investments.
“The Chinese government constantly supports enterprises in carrying out mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations,” Ministry of Commerce spokesman He Yadong said at a press briefing. he said.
Manus started as a product of Chinese start-up Butterfly Effect, also known as Monica.Im, but later became a separate entity and moved to Singapore earlier this year.
The startup has been hailed as the next DeepSeek after it launched its first AI agent in March that can help with tasks like market research, coding and data analysis.
The company reportedly laid off most of its staff in Beijing in July as it targeted global expansion. Manus said the acquisition of Meta will enable the company to continue operating in Singapore. The startup said in December it had 105 employees in the South Asian nation of Tokyo and San Francisco.
Manus said that in December, eight months after a product launch, it surpassed $100 million in annual revenue, making it the fastest startup in the world to reach the $0 milestone.
“Manus’ exceptional talent will join the Meta team to deliver general-purpose agents across our consumer and business products, including Meta AI,” Meta said in a statement in December.
The acquisition comes after the company raised $75 million in a round led by US VC Benchmark in April.
China’s investigation underlines that: [the country] “Advanced AI views its agents, models, and associated intellectual property as strategic assets,” Nick Patience, AI lead at Futurum Group, told CNBC.
“The most likely outcome I see is a longer approval process and potential conditions on how Chinese-developed Manus technology could be used, rather than an outright blockade, but the threat of tougher action gives Beijing bargaining power in a high-profile, US-led acquisition,” he added.
CNBC has contacted Meta and Manus for comment.
