China forces Meta to unwind Manus AI deal

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Meta is reportedly preparing to reverse its $2 billion-plus acquisition of AI startup Manus after Chinese regulators blocked the deal on national security grounds.

According to reports, Beijing ordered Meta to fully unwind the acquisition, restore Manus’s Chinese assets, and remove any transferred data or technology. Regulators have reportedly set a preliminary deadline of several weeks and may impose penalties if the reversal is incomplete.

Manus investors, including major Asian backers, are reportedly coordinating around the unwinding process, while some investors have already received returns.

The case reflects China’s growing scrutiny of foreign investment in domestic frontier AI firms, especially ahead of broader U.S.-China diplomatic negotiations.

OpenAI misses growth targets before IPO push

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OpenAI has reportedly fallen short of internal revenue and user growth goals as it prepares for a potential IPO, according to the Wall Street Journal.

The report says ChatGPT user growth slowed late last year, missing a target of 1 billion weekly active users, while revenue also underperformed projections amid stronger competition from Anthropic in coding and enterprise AI markets.

CFO Sarah Friar reportedly raised concerns internally about whether slower growth could challenge OpenAI’s ability to sustain massive future data-center and computing commitments. Subscriber churn has also reportedly increased.

CEO Sam Altman and Friar publicly rejected suggestions of internal misalignment, stating the company remains focused on securing compute capacity and expanding aggressively.

EU pressures Google to open Gemini and Android AI access

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The European Commission has outlined new measures requiring Google to give rival AI developers and search competitors broader access to Android features and services linked to Gemini under the Digital Markets Act (DMA).

The proposal aims to let competing AI assistants better integrate with Android devices, including sending emails, sharing content, ordering services and interacting with apps without Google prioritizing Gemini.

EU regulators say this would expand user choice and reduce platform favoritism. Google argues the move could weaken privacy, security and manufacturer flexibility by forcing access to sensitive device functions.

Third parties can submit feedback until May 13, with a final EU ruling expected by late July. Non-compliance could lead to fines of up to 10% of global annual revenue.