- Meta plans to acquire Manus for $2 billion, but not before Chinese investigators get stuck
- The Chinese company moved to Singapore, potentially without Chinese permits
- Manus’ AI could help improve Meta’s AI, but Manus will continue to function separately
Singapore-based but Chinese-founded AI company Manus is set to be acquired by Meta in a $2 billion takeover, but the deal has not gone unnoticed by Chinese regulators, who are concerned about export laws.
According to Financial TimesChinese regulators are now reviewing whether the acquisition violates export control laws and whether Manus needed an export license to move from China to Singapore.
If it is judged that an export license would have been necessary, this may mean that the trade has stalled, or even stopped altogether.
The reports even detail how Manus’ founders could face criminal liability if they are found to have exported technology without the proper authorization.
This comes as the term ‘Singapore washing’ becomes more common – a trend that sees companies moving, potentially before an acquisition deal, to avoid geopolitical scrutiny. If left to accelerate, the trend could encourage more Chinese startups to move overseas.
Under the terms of the deal, Manus will continue to operate and sell subscriptions through its app and website, and the company will still be based in Singapore.
“Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made,” CEO Xiao Hong wrote when the deal was announced by the two companies in December 2024.
Meta emphasized the scale of the opportunity, with Manus already processing over 147 trillion tokens and creating over 80 million virtual computers. The integration will also unlock Meta’s access to Manus expertise to accelerate the development of general purpose AI agents, enhancing the Meta AI portfolio.
Despite Chinese regulatory uncertainty, there appears to have been no sign of a US backlash.
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