China Halts Meta’s $2 Billion Acquisition of AI Firm Manus
- China’s National Development and Reform Commission ordered Meta to unwind its acquisition of AI startup Manus.
- The acquisition deal, announced in December 2025, was valued at approximately $2 billion.
- Manus co-founders Xiao Hong and Ji Yichao were barred from leaving China during the regulatory review process.
- Manus had relocated to Singapore by mid-2025 but still faced scrutiny from Chinese regulators.
- The startup had achieved $100 million in annual recurring revenue by December 2025 after a $75 million funding round led by Benchmark in May.
China’s decision underscores its strategic control over artificial intelligence assets and foreign investments within the sector. The regulatory intervention reflects Beijing’s emphasis on maintaining oversight over domestic tech innovations despite Manus’ relocation efforts.
Meta’s acquisition of Manus was part of its broader strategy to expand its AI capabilities, competing with industry giants like OpenAI and Google. (Source)
