The three co-founders of an artificial intelligence startup are considering strategies to follow China’s directive to reverse Meta’s acquisition worth more than $2 billion, according to a Bloomberg News report published Thursday.
Co-founders Xiao Hong, Ji Yichao and Zhang Tao are examining various approaches, including securing approximately $1 billion from outside investors to repurchase their company, the report stated, citing sources with knowledge of the situation.
The trio is in talks about a financing round that would establish the company’s worth at a comparable level to what Meta originally paid for the Singapore-based startup, according to the report.
Reuters was unable to immediately confirm the Bloomberg report. The company did not provide an immediate response to Reuters’ request for comment.
The co-founders might contribute their own funds to cover any remaining financial shortfall, the report indicated.
This approach could transform the startup into a joint venture with prospective investors and potentially lead to a public stock offering in Hong Kong.
Meta had revealed the acquisition in late December as part of efforts to enhance sophisticated AI capabilities throughout its various platforms. China quickly initiated an investigation into whether the transaction breached investment regulations and prevented two of the startup’s co-founders from departing the country.
Last month, Beijing instructed the California-based tech giant to reverse the purchase as part of increased oversight of American investments in cutting-edge Chinese technology companies amid escalating U.S.-China technology disputes.
The startup creates versatile AI systems that operate as virtual workers, autonomously performing duties including research and process automation with limited human oversight.
