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Meta is preparing to backtrack its acquisition of AI startup Manus after Chinese authorities blocked the deal on national security grounds, the Wall Street Journal reported late Monday.
The Facebook parent company had announced in December that it agreed to acquire Manus, an AI agent developed by a company founded in China but now headquartered in Singapore.
However, China’s National Development and Reform Commission reportedly said in a statement that it would prohibit foreign investment in the Manus acquisition project and directed that all parties withdraw from the transaction. The statement did not directly mention Meta.
Meta, in a statement earlier on Monday, said the transaction had “fully complied with applicable laws,” adding that it expected an appropriate resolution to the review process.
Industry analysts had previously warned that the deal could face regulatory hurdles as tech competition between the United States and China heightens.
According to the Wall Street Journal, citing people familiar with the matter, unwinding the deal is complicated because some Manus investors have already received returns from the transaction.
Meta announced in December that the acquisition, whose financial terms were not disclosed, would help “bring a leading agent to billions of people and unlock opportunities for businesses across our products.”
Manus, developed by the startup Butterfly Effect, is designed to perform tasks such as stock market analysis and the generation of personalised travel guides based on simple user prompts.
