Meta Platforms (NASDAQ: META) faced a setback after the Chinese government blocked its acquisition of AI startup Manus, originally valued at over $2 billion. This decision, announced in late 2025, stems from China’s jurisdiction over Manus, despite the company relocating its headquarters to Singapore.
Manus had rapidly scaled to achieve $100 million in annual recurring revenue within eight months of its launch, making it a prime target for Meta’s strategy to enhance its advertising automation tools. The deal’s cancellation could hinder Meta’s progress in developing agentic AI solutions, which are essential for automating tasks like market research and coding.
Although the acquisition is reportedly unwound, Manus’s founders are aiming to raise $1 billion to buy back their stakes from Meta. The blocking of this deal underscores the challenges American companies face in acquiring Chinese tech firms, as China aims to protect its homegrown AI industry.
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