Chinese regulators have blocked Meta Platforms’ proposed $2 billion acquisition of AI start-up Manus, marking a significant setback for the US tech giant’s artificial intelligence expansion plans.
The deal, announced in December, would have seen the company formerly known as Facebook integrate Manus’ advanced AI “agent” technology into its platforms to enhance automation and user interaction.
However, China’s National Development and Reform Commission (NDRC) has now prohibited foreign investment in the transaction, ordering the parties to withdraw the acquisition.
A spokesperson for Meta Platforms said the company believes the deal complied fully with applicable laws and expects a resolution following regulatory review.
“We anticipate an appropriate resolution to the inquiry,” the spokesperson said.
The blocked deal involves Manus AI, a start-up that has positioned itself as a developer of “truly autonomous” AI agents capable of planning, executing, and completing tasks with minimal human input.
Unlike conventional chatbots, Manus claims its system can independently carry out complex instructions without repeated user prompts, a capability that has attracted global interest in the fast-growing AI sector.
Although now headquartered in Singapore, Manus was founded in China and remains subject to Chinese regulatory oversight. The country maintains strict controls over technology firms, including rules governing foreign investment and cross-border acquisitions.
Beijing’s approval has been required in previous high-profile tech transactions, including arrangements involving Chinese-owned platforms operating overseas.
Reports earlier suggested that Manus’ co-founders were restricted from leaving China during regulatory scrutiny of the Meta deal, underscoring the sensitivity surrounding the transaction.
The decision comes amid heightened technological and geopolitical tensions between the United States and China, particularly in the artificial intelligence sector.
Washington recently announced closer cooperation with US AI firms to prevent the theft of advanced technologies, alleging that foreign entities particularly in China have been copying American AI models.
In response, Chinese officials have rejected what they describe as “unjustified suppression” of Chinese companies, insisting that China is evolving into a global innovation hub rather than merely a manufacturing base.
The blocked acquisition now raises questions about Meta’s future AI strategy and its ability to expand through international deals in an increasingly regulated global tech environment.
