Chinese authorities have reportedly launched an investigative review into Meta Platforms’ proposed acquisition of AI start-up Manus. The stated goal of this assessment is to determine whether the deal violates national security and technology export regulations.
Financial Times (FT) reported regulators are looking into the $2 billion deal, focussing on Manus’ AI technology, which was developed while the company was based in China before it relocated to Singapore.
Sources told FT China’s Ministry of Commerce is assessing whether the relocation of the AI company’s staff and technology to Singapore, along with the pending sale to Meta Platforms required an export licence under national regulations.
The probe is in its early stages and may not progress to a formal investigation. However, sources added the potential need for a licence could help China’s government influence or block the transaction.
Manus’ parent company Butterfly Effect was founded in China before relocating, with the shift to Singapore completed over the past year. Its technology has been not available in China, with the focus firmly on international markets.
FT noted it is uncommon for a big US company to make a move for a company originally located in China, particularly at a time of heightened tension between the two nations.
A source told FT the deal is being probed over concerns it could push more Chinese start-ups to relocate to reduce the amount of scrutiny they face.
Meta Platforms plans to incorporate Manus’ AI agentic software and its technologies into its own products if the deal proceeds.
Source: Mobile World Live
Image Credit: Meta
