China probes Meta's $2.5B Manus AI deal
Meta's buyout of AI startup Manus, valued between $2 billion and $3 billion, is under review by Chinese officials, who are concerned about possible tech export violations.
The deal, closed in December 2025, lands right in the middle of rising US-China tensions over artificial intelligence.
How a Beijing-born startup ended up with Meta
Manus started out in Beijing as Butterfly Effect but moved to Singapore before Meta stepped in.
In just eight months, it hit a $125 million revenue run rate and raised $75 million in a round led by Benchmark Capital.
Before the acquisition, Manus agreed to buy out Chinese investors as part of the acquisition and set up shop in Singapore.
What makes Manus special—and what Meta wants next
Manus builds smart AI agents that handle things like coding, research, and workflow management for a monthly fee ($20-$200).
Now part of Meta, these tools will soon show up across Facebook, Instagram, WhatsApp, and more—straight from Singapore.
Why this matters
This probe isn't just about one deal—it highlights how global politics are shaking up the tech world.
For startups with roots in China (even if they move), big exits now come with extra scrutiny and plenty of questions about where technology should flow next.