finance
China's Regulators Block Meta's $2 Billion Acquisition of Singapore-Based AI Startup Manus
Chinese regulators prohibited Meta's $2 billion purchase of Singapore-based AI firm Manus, requiring the deal's withdrawal. The move follows months of scrutiny amid escalating US-China tech tensions. Separate developments include SpaceX's option to acquire AI coding startup Cursor and surging Chinese clean tech exports.
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China's National Development and Reform Commission blocked Meta's $2 billion acquisition of AI startup Manus on Monday, prohibiting foreign investment in the deal and requiring the parties to withdraw the transaction. Meta announced the $2 billion acquisition of Manus in late December. Manus is a Singaporean AI startup with Chinese roots, founded in China before relocating to Singapore.
Chinese regulators scrutinized Meta's acquisition of Manus for months. A Meta spokesperson stated that the transaction complied fully with applicable law. Meta anticipates an appropriate resolution to the inquiry.
The outstanding team at Manus is deeply integrated into Meta and continues to run, improve, and grow the Manus service. Manus launched its first general AI agent in March of the previous year. Manus develops general purpose AI agents capable of executing tasks such as market research, coding, and data analysis.
Manus reached $100 million in annual recurring revenue in December, eight months after launching a product. U.S. VC Benchmark in April of the previous year.
China's Ministry of Commerce launched a probe into the Meta-Manos acquisition in January to assess compliance with laws on export controls, technology import and export, and overseas investment. In March, Manus' two co-founders were prevented from leaving China amid a review of Meta's acquisition. Separately, Meta plans to source space-based solar energy from Overview Energy.
Overview Energy's first contract is with Meta. SpaceX will either acquire the AI coding startup Cursor for $60 billion or pay it $10 billion to walk away by the end of 2026. David Sacks confirmed the structure of SpaceX's Cursor deal on the All-In podcast on Friday.
David Sacks is a former White House AI czar and a SpaceX investor. David Sacks framed the $10 billion as the cost of a one-year option on Cursor. Cursor is built by Anysphere. Cursor has become one of the leading IDEs for AI-assisted coding.
