Meta gives up control of Chinese AI startup Manus after eight months
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Meta gives up control of Chinese AI startup Manus after eight months, leaving Manus to revert to independent operation. The company said Tuesday it must delete some user data collected while part of Meta to meet Chinese regulatory requirements. The reversal follows China’s National Development and Reform Commission blocking Meta’s acquisition in April.
Acquisition Reversal
Meta agreed to buy Manus last year, but Chinese regulators quickly opened an investigation over concerns the deal violated export controls. In April, China’s National Development and Reform Commission blocked the purchase. Manus will now operate independently and must delete some user data collected while it was part of Meta, the company said Tuesday.
US-China AI Rivalry
The deal’s failure illustrates the trouble US and Chinese companies face as they try to gain a foothold in the AI market. In March, the US administration unveiled a new cybersecurity policy after suspected Chinese involvement in a cyber-attack on the FBI. The same month, the US-China Economic and Security Review Commission warned that Chinese use of open-source AI tools could yield an economic advantage the US could not counter through regulation.
Customer Implications
Customers of AI vendors in both countries may need to be wary about future cross-border acquisitions as the two superpowers jostle for a technological lead. Last year, US and Chinese authorities played a cat-and-mouse game over Nvidia chip exports. The Meta-Manus reversal is the latest sign of that contest.
What's Next
Manus is next required to delete the user data collected while under Meta, though the company has not said when that process will be completed. It remains unclear whether Meta will pursue other Chinese AI assets or whether regulators in either country will tighten scrutiny of cross-border AI deals.
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Meta gives up control of Chinese AI startup Manus after eight months
