Beijing: China has blocked Meta Platform’s planned $2 billion acquisition of AI startup Manus, escalating tensions in the global artificial intelligence race.
According to reports, China’s National Development and Reform Commission ordered the deal to be cancelled following an investigation into illegal foreign investment and potential technology transfer risks. The acquisition, first announced in December 2025, was reportedly nearing completion.
Founded in China and later relocated to Singapore, Manus developed a general-purpose AI agent in 2025 and generated about $100 million in annual recurring revenue. Chinese regulators, however, determined that key technology and talent remained tied to the country, placing the firm under domestic jurisdiction despite its offshore structure.
The move reflects Beijing’s broader push to curb “Singapore-washing” strategies and retain control over critical AI assets, while tightening restrictions on foreign, particularly U.S.—investment in advanced technologies.
For Meta, the collapse is a strategic setback. The company had aimed to strengthen its position in autonomous AI by acquiring Manus’s capabilities, part of a broader effort to compete with rivals such as Microsoft and Alphabet.
Analysts say the decision signals increasing fragmentation in global AI ecosystems and may force Meta to reassess its investment and acquisition strategy in the sector.
