HONG KONG (AP) — Chinese regulators have halted Meta’s planned purchase of an artificial intelligence company called Manus, dealing a blow to the social media giant’s AI expansion plans.
China’s National Development and Reform Commission announced Monday that it was stopping the foreign takeover of Manus, a Singapore-based AI startup with Chinese origins. The planning agency ordered all parties involved to abandon the transaction, though it didn’t mention Meta by name in its brief announcement.
The ruling came from the commission’s foreign investment security review office, which operates under Chinese legal guidelines. Chinese officials had previously indicated they were examining the proposed deal earlier this year.
Officials provided no detailed explanation for why they rejected the acquisition.
Meta had revealed its plans to buy Manus last December, marking an unusual instance of a major American technology company acquiring an AI firm with significant Chinese connections. The deal was designed to strengthen Meta’s artificial intelligence capabilities across Facebook, Instagram and its other platforms, utilizing Manus’ advanced AI technology that can independently handle complex, multi-step tasks.
The Facebook parent company had promised that Chinese ownership would be completely eliminated from Manus and that the startup would cease all operations within China. However, Chinese authorities announced in January they would examine whether the purchase aligned with their national regulations.
At that time, China’s commerce ministry emphasized that any companies involved in overseas investments, technology exports, data transfers or international acquisitions must follow Chinese legal requirements. Meta had stated that most Manus workers were located in Singapore.
In response to Monday’s decision, the California-based Meta maintained that their transaction “complied fully with applicable law.” The company added in a statement: “We anticipate an appropriate resolution to the inquiry.”
