China Reviews Meta’s $2 Billion AI Acquisition for Compliance
Chinese regulators have initiated a review of Meta Platforms' recent $2 billion acquisition of Singapore-based AI startup Manus. The Ministry of Commerce is examining potential violations of export control regulations and national security protocols. This marks a rare instance of U.S. tech giant acquiring Asian artificial intelligence capabilities.
The deal, finalized in December 2024, represents Meta's strategic push to enhance its AI offerings across consumer and enterprise products. Manus achieved remarkable traction prior to acquisition, generating $100 million in annual recurring revenue within eight months of product launch. The startup originally operated under Chinese parent company Butterfly Effect before relocating to Singapore earlier in 2024.
Regulatory scrutiny focuses on technology transfer protocols and cross-border investment compliance. The review underscores growing geopolitical tensions surrounding advanced AI development and intellectual property flows. Market analysts observe such investigations may become more frequent as AI capabilities increasingly factor into national security considerations.
