China’s National Development and Reform Commission ordered Meta Platforms Inc. to cancel its $2 billion acquisition of agentic AI startup Manus. This decision retroactively unwinds a transaction that was largely completed following its December announcement.
The move follows a government probe into illegal foreign investment and unauthorized technology exports. While initially viewed as a model for global expansion, the deal faced domestic criticism for transferring critical AI technology to a U.S. competitor.
The intervention tightens Beijing’s control over domestic artificial intelligence firms. It establishes a new, uncertain precedent for future cross-border technology deals involving sensitive AI assets.