China's National Development and Reform Commission has prohibited Facebook-owner Meta from completing its $2 billion acquisition of AI startup Manus, the company confirmed. The deal, announced in late December, was intended to bolster Meta's artificial intelligence capabilities across its platforms.
A Meta spokesperson told the BBC that "the transaction complied fully with applicable law" and that the company "anticipates an appropriate resolution to the inquiry."
The acquisition faced months of scrutiny from Chinese regulators. Manus, though now based in Singapore, was founded and previously headquartered in China, bringing it under Beijing's jurisdiction. Its co-founders were reportedly barred from leaving the country earlier this year as the review proceeded.
Manus claims its technology offers a "truly autonomous" AI agent that can plan, execute, and complete tasks independently, unlike conventional chatbots that require repeated prompts. Analysts had described the deal as a "natural fit" for Meta, whose CEO Mark Zuckerberg has been aggressively investing in AI, including recent plans to cut thousands of jobs to free up funds.
Any forced reversal of the acquisition would pose operational challenges for Meta, as Manus' team has already been integrated into its operations. The block comes amid escalating technology tensions between the United States and China. The White House recently said it would work with US AI firms to counter alleged Chinese industrial-scale theft of AI advances, while Beijing's US embassy dismissed such claims as "unjustified suppression."