Meta Platforms is reportedly preparing to abandon its planned acquisition of AI startup Manus after Chinese authorities moved to block the transaction over national security concerns, according to a report by The Wall Street Journal on Monday.
The parent company of Facebook had announced in December that it had reached an agreement to acquire Manus, an artificial intelligence agent developed by a firm originally founded in China but now headquartered in Singapore. The deal was positioned as part of Meta’s broader push into advanced AI capabilities.
However, China’s National Development and Reform Commission, the country’s top economic planning authority, issued a statement on Monday declaring that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition.” The statement notably did not directly mention Meta.
Meta, in a statement provided to AFP on the same day, maintained that “the transaction complied fully with applicable law.” It further added, “We anticipate an appropriate resolution to the inquiry.”
Analysts had previously cautioned that the deal could face regulatory hurdles, reflecting intensifying technological competition between the United States and China.
Citing individuals familiar with the situation, The Wall Street Journal reported that the situation has become more complicated due to the fact that investors in Manus have already begun receiving returns tied to the transaction, making a reversal more complex.
When the deal was first announced in December, Meta—without disclosing financial terms—said it would “bring a leading agent to billions of people and unlock opportunities for businesses across our products.”
Manus, developed by the startup Butterfly Effect, describes its technology as capable of performing a wide range of tasks, including analyzing stock markets and generating personalized travel guides based on simple user prompts.
