China Suspends Meta’s $2bn Manus Agreement, Directs Withdrawal of AI Acquisition
China has halted Meta’s $2 billion acquisition of Manus, compelling the company to withdraw as regulators impose stricter controls on foreign investment in the AI sector.
Chinese regulators have halted Meta Platforms’ proposed $2 billion acquisition of AI start-up Manus, instructing both parties to retract from the agreement.
The ruling was issued by China’s National Development and Reform Commission, which prohibited foreign investment in the transaction following an extensive regulatory review period.
Meta announced in December that the deal would integrate Manus’ autonomous AI agents across its platforms to enhance its artificial intelligence capabilities.
A representative from the company stated:
“We expect a suitable conclusion to the investigation.”
Manus has established itself as a sophisticated AI platform that can carry out tasks autonomously without the need for continuous user input. The company asserts that its system is capable of planning, executing, and delivering results based on provided instructions.
The agreement was perceived as a tactical initiative by Meta’s leader, Mark Zuckerberg, aimed at advancing AI development.
Manus, currently located in Singapore, was established in China and continues to operate under the regulatory framework of that country. Chinese authorities impose stringent regulations on the transfer and sale of domestic technology to foreign companies.
Earlier reports indicated that the company’s co-founders faced restrictions on leaving China while the review process was underway.
The block intensifies pressure on Meta, which has ramped up its investment in AI while simultaneously reducing its workforce by thousands.
The decision arises amid ongoing tensions between the United States and China, which are influencing the global tech sector.
The White House has recently announced plans to enhance collaboration with US AI companies in response to what it characterized as extensive attempts by foreign entities to replicate American technology.
The Chinese embassy in Washington dismissed the assertion, condemning what it termed the suppression of Chinese enterprises and emphasizing the nation’s expanding influence in global innovation.
