China's National Development and Reform Commission (NDRC) has prohibited Meta's $2 billion acquisition of Manus, an AI startup that builds autonomous agents. The NDRC, which oversees economic policymaking, ordered the companies to unwind the deal on Monday, though no further details were provided.
Meta announced its intention to acquire Manus in December as part of its push into developing general-purpose AI agents for its products, including Instagram and WhatsApp. Manus, originally created in China, relocated to Singapore in mid-2025 and gained attention last year for its AI agent capable of performing tasks like stock analysis and vacation planning.
'The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,' a Meta spokesperson stated.
Manus had recently announced an integration with Meta's advertising management tools, describing it as 'having a professional AI ads analyst directly within your Manus workspace.' The startup reported annual recurring revenue exceeding $100 million and boasts millions of users.
The acquisition was seen as a strategic move for Meta to embed AI capabilities into its platforms rapidly. Manus operates on third-party AI models, such as Anthropic's Claude, allowing Meta to bypass the need to develop its own underlying models. Unwinding the deal could delay Meta's efforts to transform into an 'AI-native' company, leveraging AI agents for tasks like coding and operational management.
The NDRC's decision underscores China's growing scrutiny of foreign investments in its tech sector, even for companies that have relocated abroad. The move raises questions about how the unwinding process will unfold, particularly given the ongoing collaboration between Meta and Manus.