Meta and Manus were ready to stroll down the aisle together, but with the stroke of a pen, China ruined their wedding.
China’s National Development and Reform Commission ordered Meta and Manus to unwind their $2 billion acquisition in a brief statement Monday. The decision came after Beijing launched a probe into whether the deal violated export controls and technology transfer laws. Manus, a Singaporean AI startup with Chinese roots, develops general-purpose AI agents that can execute complex tasks like market research, coding and data analysis. The company hit $100 million in annual recurring revenue just eight months after launching its product.
The deal raised red flags on both sides of the Pacific. Congress has blocked American investors from directly backing Chinese AI companies, while China has tried to prevent Chinese AI founders from moving their businesses offshore. Manus relocated from China to Singapore before Meta announced the acquisition in December. China’s decision to block the deal alarmed tech founders and venture capitalists who were hoping to use the so-called “Singapore-washing” model to avoid meddling by both Beijing and Washington.
Meta and Manus were ready to stroll down the aisle together, but with the stroke of a pen, China ruined their wedding.
China’s National Development and Reform Commission ordered Meta and Manus to unwind their $2 billion acquisition in a brief statement Monday. The decision came after Beijing launched a probe into whether the deal violated export controls and technology transfer laws. Manus, a Singaporean AI startup with Chinese roots, develops general-purpose AI agents that can execute complex tasks like market research, coding and data analysis. The company hit $100 million in annual recurring revenue just eight months after launching its product.
The deal raised red flags on both sides of the Pacific. Congress has blocked American investors from directly backing Chinese AI companies, while China has tried to prevent Chinese AI founders from moving their businesses offshore. Manus relocated from China to Singapore before Meta announced the acquisition in December. China’s decision to block the deal alarmed tech founders and venture capitalists who were hoping to use the so-called “Singapore-washing” model to avoid meddling by both Beijing and Washington.
