finance
China's Regulators Block Meta's $2 Billion Acquisition of Singapore-Based AI Firm Manus
Chinese regulators ordered Meta to unwind its December 2025 purchase of Singapore-based AI firm Manus, citing national security concerns. The decision followed months of scrutiny and requires restoring the companies to their pre-acquisition state. Both Meta and Manus stated they would comply with the ruling.
Ars TechnicaAudio version
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China's National Development and Reform Commission blocked Meta's acquisition of Manus, a Singapore-based AI startup with Chinese roots, on April 27, 2026. The regulator ordered Meta and Manus to restore the transaction to its pre-acquisition state. Meta acquired Manus for roughly $2 billion in December 2025.
Chinese regulators scrutinized Meta's acquisition of Manus for months starting in January 2026. During the review, Chinese authorities restricted two Manus co-founders from leaving China, according to the Financial Times. Manus shut down its mainland China operations and relocated to Singapore last summer.
The relocation of Manus to Singapore was reviewed by Chinese regulators, including the National Development and Reform Commission. Manus was founded by Chinese tech entrepreneurs and was previously based in China. Manus developed the world’s first general AI agent, with a demo that broke the internet in March 2025.
Manus' general AI agent is designed to help users with tasks such as searching real estate sites for a new home or booking airline tickets and hotels for an international trip. Manus stated its service can plan, execute and complete tasks independently in accordance with instructions. Manus provided Meta employees with unlimited-usage accounts after the acquisition announcement in December 2025.
Meta and Manus both stated they would respect and comply with the regulatory decision. A Meta spokesperson also told the BBC that the transaction complied fully with applicable law and anticipated an appropriate resolution to the inquiry. Tencent invested in Manus founder Xiao Hong’s previous company, Nightingale Technology.
Tencent reportedly led a later round in Manus parent company Monica. ZhenFund is an early backer of Manus. Zhipu AI and MiniMax went public last year. Tencent released Hy3 preview, the latest version of its Hunyuan model family, in the past month.
