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China Reviews Meta’s Purchase of AI Startup Manus Over Possible Tech Control Violations, FT Reports

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Chinese authorities are reviewing Meta Platforms’s acquisition of artificial intelligence startup Manus for potential violations of China’s technology export control rules, the Financial Times reported on Tuesday, citing people familiar with the matter.

According to the report, officials from China’s commerce ministry are assessing whether the relocation of Manus’ staff and technology to Singapore, followed by its sale to Meta, should have required an export license under Chinese law. The review is said to be at a preliminary stage and may not result in a formal investigation.

However, the Financial Times noted that if an export license were deemed necessary, it could give Beijing leverage over the transaction and, in an extreme scenario, potentially force the parties to abandon the deal. Reuters said it could not immediately verify the report. Meta and Manus did not respond to requests for comment.

Meta acquired Manus last month, with a source familiar with the matter previously telling Reuters that the deal valued the Singapore-based company at between $2 billion and $3 billion.

Manus drew widespread attention earlier this year after its product went viral on X. The startup claimed to have developed the world’s first general AI agent capable of autonomously making decisions and executing tasks with minimal prompting, positioning it as a potential rival to AI systems such as ChatGPT and DeepSeek.

The reported review comes amid heightened scrutiny by Chinese regulators over outbound transfers of advanced technology, particularly as geopolitical tensions rise and governments seek to safeguard strategic AI capabilities.

Meta Buys AI Startup Manus to Accelerate Artificial Intelligence Push

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Meta is acquiring artificial intelligence startup Manus as the owner of Facebook and Instagram steps up efforts to expand AI capabilities across its platforms. The company did not disclose financial terms, though The Wall Street Journal reported the deal was valued at more than $2 billion.

Manus, a Singapore-based platform with Chinese roots, launched a general-purpose AI agent earlier this year offering paid tools for research, coding and other tasks. Meta said Manus already serves millions of users worldwide and will help deliver AI agents across its consumer and business products, including Meta AI.

Manus CEO Xiao Hong said joining Meta would provide a stronger foundation without changing how the platform operates. Manus will continue selling subscriptions through its own app and website and confirmed it will remain based in Singapore.

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The startup has grown rapidly, announcing earlier this month that it surpassed $100 million in annual recurring revenue just eight months after launch. Early backers reportedly included Tencent Holdings, ZhenFund and HSG.

Meta said there will be no continuing Chinese ownership interests after the deal and that Manus will discontinue operations in China. The move comes as Meta CEO Mark Zuckerberg seeks to strengthen the company’s AI position amid competition from Google and OpenAI. In June, Meta invested $14.3 billion in Scale AI and recruited its CEO to help lead advanced AI development.

Meta to buy Chinese-founded startup Manus to boost advanced AI

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Meta said on Monday it will acquire Chinese-founded artificial intelligence startup Manus, stepping up efforts to integrate more advanced AI capabilities across its platforms. Financial terms were not disclosed, but a source with direct knowledge of the matter said the deal values the Singapore-based firm at between $2 billion and $3 billion.

Manus did not immediately respond to a request for comment. The startup drew widespread attention earlier this year after releasing what it described as the world’s first general AI agent—software designed to make decisions and execute tasks autonomously with far less prompting than conventional chatbots such as ChatGPT or DeepSeek. The launch sparked viral discussion on X and led some commentators to label Manus “China’s next DeepSeek,” with praise from Chinese state television.

Months later, Manus moved its headquarters from China to Singapore, joining a broader wave of Chinese-founded tech firms seeking to reduce exposure to rising U.S.-China tensions. The company’s products are not available in China. Manus has claimed its AI agent outperforms OpenAI’s DeepResearch and maintains a strategic partnership with Alibaba to collaborate on AI models.

Meta said it will operate and commercialize the Manus service and integrate it into both consumer and business offerings, including Meta AI. The acquisition reflects intensifying competition among large technology companies racing to secure differentiated AI capabilities through deals and talent hires.

Earlier this year, Meta invested in Scale AI in a transaction valuing the startup at $29 billion and bringing in its CEO, Alexandr Wang. Manus, backed by parent company Beijing Butterfly Effect Technology, raised $75 million this year at a valuation of about $500 million, according to the source, confirming prior media reports. The funding round was led by Benchmark, with investors including HSG, ZhenFund and Tencent Holdings, PitchBook data showed.