- Meta plans to acquire Manus for $2 billion, but not before Chinese researchers get caught
- The Chinese company moved to Singapore, potentially without Chinese permits.
- Manus’ AI could help improve Meta’s AI, but Manus will still operate separately
Artificial intelligence company Manus, based in Singapore but founded in China, will be acquired by Meta in a $2 billion acquisition, but the deal has not gone unnoticed by Chinese regulators, who are concerned about export laws.
According to the 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 an export license is deemed to have been needed, it could mean the deal is stalled or even halted entirely.
Reports even detail how Manus’ founders could face criminal liability if they are found to have exported technology without the correct authorization.
This comes as the term ‘Singaporewash’ becomes more common, a trend that sees companies relocate, potentially ahead of a takeover deal, to avoid geopolitical scrutiny. If expected to accelerate, the trend could encourage more Chinese startups to move abroad.
Under the terms of the agreement, Manus will continue to operate and sell subscriptions through its app and website, and the company will continue to be headquartered 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 two companies announced the deal in December 2024.
Meta emphasized the magnitude of the opportunity, as Manus has already processed more than 147 billion tokens and created more than 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 Meta AI’s portfolio.
Despite Chinese regulatory uncertainty, there appears to be no sign of a reaction from the United States.
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