- Meta plans to acquire Manus for $2 billion, but not before Chinese investigators are cornered
- The Chinese company has set up in Singapore, potentially without a Chinese permit
- Manus’s AI could help improve Meta’s AI, but Manus will continue to operate separately
Singapore-based but China-founded AI company Manus is set to be acquired by Meta in a $2 billion buyout, but the deal has not gone unnoticed by Chinese regulators concerned about export laws.
According to the Financial TimesChinese regulators are currently examining whether the acquisition violates export control laws and whether Manus needed an export license to move from China to Singapore.
If it turns out that an export license would have been necessary, it could mean that the deal is blocked, or even stopped altogether.
The reports even detail how Manus’ founders could be held criminally liable 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 relocating, potentially ahead of an acquisition deal, in order to avoid geopolitical scrutiny. If allowed to accelerate, the trend could encourage more Chinese startups to set up operations abroad.
Under the terms of the agreement, 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 operates or how decisions are made,” CEO Xiao Hong wrote when the two companies announced the deal in December 2024.
Meta highlighted the scale of the opportunity, with Manus having already processed over 147 trillion tokens and created over 80 million virtual computers. The integration will also allow Meta to access Manus’ expertise to accelerate the development of general-purpose AI agents, thereby enhancing the Meta AI portfolio.
Despite Chinese regulatory uncertainty, there appears to have been no sign of a US response.
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