China has opened an investigation into Meta's $2 billion purchase of AI startup Manus, examining whether the deal violates laws governing technology transfers abroad, reported CNBC.
The probe focuses on whether the deal meets Chinese rules on tech exports and foreign investments. Manus, now headquartered in Singapore, traces its origins to the Chinese startup Butterfly Effect. The startup creates AI agents that handle jobs such as writing code, analyzing markets, and sorting through data.
Meta bought Manus in December as part of its push to compete with AI leaders like OpenAI and Google. The deal fits the social media giant's broader strategy, which has included pouring billions into artificial intelligence development. Manus reportedly hit $100 million in yearly recurring revenue less than a year after releasing its product.
This acquisition battle is part of a larger story about who controls the future of AI technology. As tech giants race to build more capable AI systems, the energy demands of these tools keep climbing. Training and running AI models require massive amounts of electricity, putting strain on electrical grids and driving up utility costs in some regions.
AI shows promise for improving clean energy systems, but its hunger for electricity raises questions about sustainability.
The Chinese government framed the investigation as routine oversight.
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"The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations," Ministry of Commerce spokesperson He Yadong said at a press briefing, quoted by CNBC.
Industry watchers see the probe as a strategic move.
"The most likely outcome I see is a lengthier approval process and potential conditions around how Manus technology developed in China can be used, rather than an outright block, but the threat of stricter action gives Beijing bargaining power in a high profile, US led acquisition," Nick Patience, AI lead at the Futurum Group, told CNBC.
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