Meta's recent acquisition of artificial intelligence startup Manus is now under scrutiny by the Chinese government, which is investigating whether the deal violated regulations concerning technology exports and outbound investment. The probe, announced Thursday by Ministry of Commerce spokesman He Yadong, centers on China's rules requiring government approval for the export of specific technologies, including interactive AI systems.
The core of the investigation revolves around Manus's origins. While based in Singapore, the company was founded by Chinese engineers and had a Chinese parent company. This connection has prompted the Ministry of Commerce to evaluate whether Meta circumvented export restrictions when it acquired Manus last month. The Chinese government has previously invoked similar regulations, asserting its right to approve the sale of TikTok's U.S. operations.
Manus gained prominence in Silicon Valley last March with the launch of its AI agent, a tool capable of autonomously building websites and performing basic coding tasks. This development occurred amidst growing concern within the American tech sector regarding the emergence of Chinese AI companies. Notably, DeepSeek, another Chinese startup, had recently unveiled a high-performing AI system developed at a significantly lower cost than comparable systems from leading U.S. firms. By December, Manus reported exceeding $100 million in annual recurring revenue, highlighting its rapid growth and market traction.
Meta's acquisition of Manus capped a year of significant investment in AI, reflecting the industry-wide race to dominate the rapidly evolving landscape. The deal's potential violation of Chinese regulations introduces a new layer of complexity for Meta, potentially impacting its future AI development strategies and its access to Chinese talent and resources. The outcome of the investigation could set a precedent for future acquisitions involving AI companies with ties to China, influencing the global flow of technology and investment in the sector.
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