Meta is preparing to backtrack its acquisition of AI startup Manus, the Wall Street Journal reported late Monday, after China banned the transaction citing national security concerns.
Facebook owner Meta announced in December it had agreed to acquire Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore.
But China’s top body for economic planning, the National Development and Reform Commission, said in a statement on Monday that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition.
The statement did not specifically name Meta.
Meta had told AFP in a statement on Monday that “the transaction complied fully with applicable law.”
“We anticipate an appropriate resolution to the inquiry,” it added.
Analysts had warned the deal could fall foul of regulators at a time of fierce technological rivalry between Washington and Beijing.
The Wall Street Journal, citing sources familiar with the matter, said the U-turn was complicated by the fact that Manus’s investors have already received returns from the deal.
Meta said in December that the deal — the financial details of which were not disclosed — would “bring a leading agent to billions of people and unlock opportunities for businesses across our products.”
Manus, created by startup Butterfly Effect, says on its website that it can do everything from analyzing the stock market to creating a personalized travel handbook for a trip with simple user instructions.
