Meta is preparing to pull out of its acquisition of AI startup Manus, the Wall Street Journal reported late Monday, after China blocked the transaction citing national security concerns.
Facebook owner Meta announced in December had agreed to buy Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore.
But China’s top economic planning body, the National Development and Reform Commission, said in a statement on Monday that it will “ban foreign investment in the acquisition of the Manus project” and “demand that the parties involved withdraw the acquisition.
Meta’s name is not specifically mentioned in the statement.
Meta told AFP in a statement on Monday that “the transaction fully complied with the law in force”.
“We anticipate an appropriate resolution to the investigation,” he added.
Analysts had warned that the deal could run afoul of regulators at a time of fierce technology rivalry between Washington and Beijing.
The Wall Street Journal, citing sources familiar with the matter, said the turnaround has been complicated by the fact that Manu’s investors have already received returns from the deal.
Meta said in December that the deal – the financial details of which were not disclosed – would “bring a leading agent to billions of people and open opportunities for businesses in our products”.
Manus, created by startup Butterfly Effect, says on its website that it can do everything from analyzing the stock market to creating a personalized travel manual for a trip with simple user instructions.
