Meta is facing a regulatory probe in China over its acquisition of artificial intelligence startup Manus, as Chinese authorities assess whether the deal complies with the country’s export control and technology regulations.
China’s Ministry of Commerce said on Thursday it will conduct an assessment and investigation into the transaction, focusing on compliance with laws governing technology imports and exports, export controls and overseas investment.
Meta acquired Singapore-based Manus last month as part of its push to integrate advanced automation and AI agents across its consumer and enterprise products. While the company did not disclose financial terms, media reports have put the value of the deal at more than $2 billion.
At a regular press briefing, Ministry of Commerce spokesperson He Yadong said China supports cross-border business operations and international technology cooperation, provided they are carried out in accordance with laws and regulations.
Meta and Manus did not immediately respond to requests for comment.
Manus originated from a Chinese startup known as Butterfly Effect, also referred to as Monica.Im, before being spun off and relocating its headquarters to Singapore earlier this year. The company gained attention after launching its first AI agent in March, positioning itself as a fast-growing player in automation tools used for tasks such as market research, coding and data analysis.
As part of its international expansion, Manus scaled back operations in Beijing last year and said it would continue operating from Singapore following the acquisition. The company reported having more than 100 employees across Singapore, Tokyo and San Francisco as of December.
Manus has said it surpassed $100 million in annual recurring revenue within eight months of launching its product, claiming one of the fastest revenue ramps among AI startups globally. Prior to the Meta deal, the company raised $75 million in funding in a round led by Benchmark in April.
Industry analysts said the Chinese review highlights Beijing’s view of advanced AI technology as a strategic asset. Nick Patience, AI lead at The Futurum Group, said the investigation is more likely to result in extended scrutiny and potential usage conditions rather than an outright rejection.
The acquisition comes as Meta continues to invest heavily in artificial intelligence amid intensifying competition with rivals including OpenAI and Google. In recent months, Meta has announced multibillion-dollar investments and acquisitions aimed at strengthening its AI capabilities and accelerating development of its generative AI products.
