China reviews Meta’s $2 billion deal to buy AI startup Manus
(Bloomberg) — Chinese officials are looking into whether Meta Platforms Inc.’s acquisition of artificial intelligence startup Manus violated regulations, an initial review that could hinder the deal down the road if officials determine wrongdoing.
Regulators have begun a review of the transaction unveiled in December, including possible national security implications, people familiar with the matter said. Worth more than $2 billion, the deal will be assessed for its consistency with relevant laws and regulations, Ministry of Commerce spokesman He Yadong said at a regular briefing.
Founded in China and now based in Singapore, Manus drew global renown for its progress with building artificial intelligence agents. The review, first reported by the Financial Times, is in its early stages and regulators might ultimately choose not to intervene, the people said, asking to remain anonymous discussing a sensitive situation.
In some cases, reviews of this kind can become formal probes and — if violations are alleged — potentially result in penalties or a demand for certain conditions before deal approval. Beijing has also been scrutinizing ByteDance Ltd.’s sale of TikTok US to American investors, which officials haven’t yet formally approved.
Representatives for Manus declined to comment and Meta didn’t respond to requests for comment.
Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry, including in artificial intelligence. Much of that effort however has focused on fundamental hardware such as AI accelerators and other semiconductors.
The Meta deal marked a rare US acquisition of an Asian tech company and the latest multibillion-dollar AI bet from Chief Executive Officer Mark Zuckerberg. Manus’ AI agent can complete certain general tasks, such as screening resumes, creating trip itineraries and analyzing stocks in response to basic instructions.
Manus’ parent company, Butterfly Effect Pte, only completed its transition from China to Singapore over the past year or so. The startup has focused on international markets almost from the outset, and its product has never been available in its country of origin.
San Francisco-based venture capital firm Benchmark drew fire in 2025 from US lawmakers and other venture investors for backing an AI company with ties to China.
–With assistance from Zheng Wu, Peter Elstrom, Vlad Savov and Phila Siu.
(Updates with MOFCOM comment from Thursday.)
More stories like this are available on bloomberg.com
©2026 Bloomberg L.P.