Tuesday, 02 January 2024 12:17 GMT

China Scrutinizes Meta’s Acquisition of AI Startup Manus


(MENAFN) China has launched a preliminary review into Meta’s acquisition of AI startup Manus, raising questions over potential breaches of technology export control laws, media reported Wednesday.

Officials at the Commerce Ministry are assessing whether the transaction requires an export license, according to two people familiar with the matter cited by the paper.

Meta disclosed last week that it had purchased Manus, marking another major step in its aggressive push into artificial intelligence.

Manus, originally founded in China before moving its base to Singapore, introduced its first general AI agent in early 2025. The system is capable of handling advanced tasks such as data analysis, coding, and market research.

Authorities are now scrutinizing whether the relocation of Manus’ staff and technology to Singapore, followed by the sale to Meta, should have triggered licensing requirements under Chinese law.

The probe is still in its early phase and may not evolve into a formal investigation, media noted. Yet analysts warn that licensing rules could give Beijing “an avenue to influence the transaction, including trying to force the parties to abandon the deal in an extreme case.”

Despite being less than a year old, Manus reported annualized revenue surpassing $100 million, with a run rate above $125 million.

Separately, media, citing sources close to the matter, said Meta was finalizing the acquisition at a valuation exceeding $2 billion.

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