Background of the Deal

Meta has agreed to acquire Manus, an artificial‑intelligence company originally founded in China, for a reported $2 billion. The transaction was announced in December 2024, and Manus has since relocated its headquarters to Singapore. Under the terms of the agreement, Manus will continue to operate as a separate entity, maintaining its subscription‑based services through its app and website.

Regulatory Concerns from China

Chinese authorities have begun reviewing the acquisition to determine whether it breaches the country’s export‑control laws. The review focuses on whether Manus needed an export license to move its operations from China to Singapore. If regulators conclude that a license was required but not obtained, the deal could face delays or even be halted. The investigation also raises the possibility that Manus’s founders could face criminal liability for exporting technology without proper authorization.

Implications for the Companies

Meta emphasizes the strategic value of Manus’s technology, noting that the firm has already processed more than 147 trillion tokens and created over 80 million virtual computers. Access to this capability is expected to accelerate Meta’s development of general‑purpose AI agents and strengthen its overall AI portfolio. Despite the regulatory uncertainty, Meta has not reported any pushback from U.S. officials.

Manus’s Position and Future Operations

Manus’s CEO, Xiao Hong, stated that joining Meta will allow the company to build on a stronger, more sustainable foundation without altering how Manus works or makes decisions. The company will remain based in Singapore, continuing to sell subscriptions and operate its services independently of Meta’s broader business.

Broader Industry Context

The situation reflects a growing trend known as “Singapore washing,” where firms relocate abroad—often to Singapore—potentially to sidestep geopolitical scrutiny before major transactions. Observers note that such moves could encourage more Chinese startups to relocate internationally, affecting how cross‑border technology deals are structured and regulated.

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