China to investigate Meta’s Manus acquisition amid AI security scrutiny

Meta

• China to investigate Meta's $2B acquisition of AI startup Manus for compliance
• Manus relocated HQ to Singapore, laid off Beijing staff, and saw rapid revenue growth.
• Meta aims to use Manus talent to build general-purpose AI agents across products

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China said on Thursday it will investigate Meta’s reported $2 billion acquisition of artificial intelligence startup Manus, examining whether the deal complies with the country’s export control and overseas investment laws.

In a statement, China’s Ministry of Commerce said it would conduct an assessment into how the acquisition aligns with regulations covering technology import and export, export controls, and outbound investment. The announcement follows Meta’s purchase of Singapore-based Manus last month, a deal that underscores the company’s push to strengthen its AI capabilities.

While Meta has not disclosed the financial terms, The Wall Street Journal reported that the acquisition was valued at more than $2 billion, citing people familiar with the matter. Meta has confirmed the transaction but has not commented on the investigation.

As per a report by CNBC, speaking at a press briefing, Ministry of Commerce spokesperson He Yadong said China continues to support lawful international cooperation by companies, while stressing that such activity must comply with relevant regulations. The probe, he said, is aimed at ensuring that rules around sensitive technologies are properly followed.

From Beijing roots to Singapore base

Manus originated as a product of Chinese startup Butterfly Effect, also known as Monica.Im, before being spun out as a separate company. Earlier this year, the firm relocated its headquarters to Singapore as part of its international expansion plans.

The startup drew significant attention after launching its first AI agent in March. The product was positioned as a next-generation tool capable of handling tasks such as market research, coding, and data analysis, leading some observers to compare it to China’s earlier AI breakout, DeepSeek.

As Manus expanded globally, it reportedly laid off most of its Beijing-based staff in July. The company said it would continue operating from Singapore following the Meta acquisition. As of December, Manus said it employed 105 people across Singapore, Tokyo, and San Francisco.

Rapid growth and strategic value

Manus has claimed rapid commercial success, saying it crossed $100 million in annual recurring revenue in December, just eight months after launching its product. The company described this as the fastest a startup has reached the milestone from zero.

Meta said the deal would see Manus’s talent join its teams to help build general-purpose AI agents across consumer and business products, including Meta AI. The acquisition came shortly after Manus raised $75 million in a funding round led by US venture capital firm Benchmark in April.

Meta’s broader AI push

The Manus deal is part of Meta’s aggressive AI expansion. The company has spent billions building AI capabilities to compete with rivals such as OpenAI and Google. In June, Meta invested $14.3 billion for a 49 percent stake in Scale AI, bringing founder Alexandr Wang into its leadership ranks. It also acquired AI wearable startup Limitless in December.

Meta chief Mark Zuckerberg has increasingly prioritised product-focused generative AI efforts over its traditional research unit, FAIR, as the company looks to accelerate progress on its Llama family of models.