What's Brewing: China Takes a Closer Look at Meta’s $2 Billion AI Bet on Manus

In the fast-moving world of artificial intelligence, even billion-dollar deals can suddenly find themselves slowed by geopolitics.

Chinese authorities are reviewing Meta’s acquisition of AI startup Manus, a deal valued at around $2 billion, amid concerns that it may involve sensitive technology transfers that fall under China’s export control laws, according to a report by the Financial Times.

The review, still at a preliminary stage, may not necessarily lead to a formal investigation. But its very existence highlights how AI—once seen purely as a commercial frontier—has now become a strategic asset closely watched by governments.

Why China Is Paying Attention

According to the report, officials from China’s Ministry of Commerce are examining whether the relocation of Manus’ staff and core technology to Singapore, followed by its sale to Meta, should have required an export licence under Chinese law. If such a licence is deemed necessary, Beijing could theoretically gain leverage over the transaction.

In an extreme scenario, this could even mean pressuring the companies to rethink or abandon the deal—though sources cited by the Financial Times stress that the review is still in its early days.

The news underscores a growing reality for global tech giants: cross-border AI deals are no longer just business decisions, but matters that can trigger regulatory and national security scrutiny.

Silence From the Companies

For now, both Meta and Manus have stayed quiet. Reuters, which first reported on the development, said it could not independently verify the Financial Times report, and neither company responded immediately to requests for comment.

Meta completed the acquisition last month, with people familiar with the deal telling Reuters that Manus was valued at between $2 billion and $3 billion. The startup is currently based in Singapore, but its roots and technical talent have drawn regulatory attention in China.

The Startup That Caught the World’s Eye

Manus shot into the global spotlight earlier this year after it released what it described as the world’s first “general AI agent.” Unlike traditional chatbots such as ChatGPT or DeepSeek, Manus claimed its system could independently make decisions and execute tasks with minimal human prompting.

That promise of autonomy—hailed by some as a breakthrough and viewed by others with caution—helped the startup go viral on X and attracted intense interest from global tech players. For Meta, the acquisition was seen as a strategic move to deepen its AI capabilities amid fierce competition.

A Sign of the Times

While it remains unclear whether China’s review will materially impact the deal, the episode reflects a broader shift in how AI innovation is treated worldwide. Governments are increasingly wary of how advanced technologies move across borders, who controls them, and how they might be used.

For startups like Manus and tech giants like Meta, the message is clear: in today’s AI race, regulatory and geopolitical considerations can be just as decisive as technology and valuation.