Meta's $2 billion acquisition of AI assistant platform Manus is facing regulatory scrutiny, creating a transatlantic divide between Washington and Beijing. While U.S. regulators seem satisfied with the deal's legitimacy, Chinese authorities are reportedly examining whether it violates technology export controls, according to the Financial Times.

The acquisition price tag of $2 billion underscores Meta's commitment to bolstering its AI capabilities. This investment follows a financing round earlier this year led by Benchmark, which immediately sparked controversy. U.S. Senator John Cornyn voiced concerns on X, and the U.S. Treasury Department initiated inquiries regarding potential restrictions on American investment in Chinese AI companies.

The regulatory divergence highlights the increasing geopolitical tensions surrounding AI technology. The U.S. appears primarily concerned with outbound investment and technology transfer to China, while China is focused on controlling the export of advanced AI technologies. This situation creates uncertainty for companies operating in the AI space, potentially impacting future cross-border deals and collaborations.

Manus, an AI assistant platform, had previously relocated from Beijing to Singapore in response to U.S. concerns about Benchmark's investment. This move was described by a Chinese professor on WeChat as a step-by-step disentanglement from China. The company's technology is likely focused on natural language processing and machine learning, key components for developing advanced AI assistants. Meta's acquisition suggests a strategic move to integrate Manus's technology into its existing suite of products and services, potentially enhancing its virtual assistant capabilities across platforms like Facebook, Instagram, and WhatsApp.

The future of the Meta-Manus deal hinges on the outcome of the Chinese regulatory review. If Chinese authorities determine that Manus required an export license when it relocated its technology, Beijing could potentially exert leverage over the deal. This situation underscores the growing importance of navigating complex regulatory landscapes in the global AI market and the potential for geopolitical factors to influence business transactions.