China blocks Meta's acquisition of AI startup Manus, requiring parties to withdraw the deal

Beijing's National Development and Reform Commission prohibited the foreign investment in the acquisition of Manus and required the parties involved to withdraw the transaction, according to a statement on Monday. The two Manus co-founders, Chief Executive Xiao Hong and Chief Scientist Ji Yichao, were reportedly restricted from leaving China during a regulatory review of the deal.

Manus is an artificial intelligence agent (software that can complete tasks autonomously) created by startup Butterfly Effect and based in Singapore, though the company was originally founded in China. It can sift through and summarize resumes or create a stock analysis website.

Bloomberg Intelligence analysts said the Meta acquisition could be worth more than $2 billion and was likely aimed at expanding Meta's AI agent task capabilities. Meta had announced the deal in December, stating it would bring an agent to billions of people and unlock opportunities for businesses.