China blocks Meta’s planned $2b acquisition of AI start-up Manus
Manus has drawn attention for what it describes as "truly autonomous" agents, technology designed to independently plan, execute and complete tasks based on initial instructions, rather than relying on continuous user prompts
Chinese regulators have blocked Meta's planned acquisition of artificial intelligence start-up Manus, a deal estimated at about $2 billion, citing restrictions on foreign investment.
The National Development and Reform Commission prohibited the transaction and ordered both parties to withdraw, according to details of the decision, reports the BBC.
Manus has drawn attention for what it describes as "truly autonomous" agents, technology designed to independently plan, execute and complete tasks based on initial instructions, rather than relying on continuous user prompts. Analysts had viewed the capability as a "natural fit" for Meta's push into artificial intelligence under Chief Executive Mark Zuckerberg.
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The regulatory intervention reflects concerns tied to Manus's origins. Although now headquartered in Singapore, the company was founded and previously based in China, making it subject to rules governing the export or sale of technology to foreign entities.
The review process has also involved legal complications. In March, Manus's two co-founders were placed under exit bans, preventing them from leaving China while authorities examined the deal.
Despite the block, Meta has said the Manus team is already "deeply integrated" into its operations, working to expand the service for millions of users. That level of integration could complicate efforts to "unwind" the arrangement.
The decision comes amid broader tensions between the United States and China over advanced technologies. The White House has said it plans to work with US companies to counter what it called "industrial-scale campaigns" by foreign actors, particularly in China, to appropriate AI innovations. Chinese officials, in turn, have criticised what they describe as the "unjustified suppression" of Chinese firms and say the country is emerging as a global "innovation lab".
Within Meta, the development coincides with a period of restructuring as the company increases spending on AI. It recently announced plans to cut about one in ten jobs, its largest round of layoffs since 2023. Meta has said it hopes for an "appropriate resolution" to the regulatory review and maintains that the transaction complied with applicable laws.
