China opens export-control review of Meta Manus acquisition
China’s Ministry of Commerce launched an assessment and investigation into Meta’s acquisition of artificial intelligence startup Manus, focusing on compliance with rules covering export controls, technology import and export, and overseas investment.
Meta acquired Singapore-based Manus in December as it looked to add advanced automation and agent capabilities across consumer and enterprise products. Deal terms were not disclosed publicly, with multiple reports placing the transaction at more than $2 billion.
Manus originated as a product under a China-linked startup known as Butterfly Effect, also referenced as Monica.im, before becoming a separate entity and relocating to Singapore. The company has described continuing operations from Singapore following the acquisition.
The startup drew attention after launching an artificial intelligence agent in March, positioned for tasks such as market research, coding, and data analysis. Manus has also publicly referenced crossing $100 million in annual recurring revenue in December. Annual recurring revenue is a subscription metric that annualizes recurring subscription income.
Funding disclosures around the company included a $75 million round led by Benchmark, and earlier reporting put headcount at 105 employees across Singapore, Tokyo, and San Francisco.
The Ministry of Commerce review adds a new layer of scrutiny around cross-border deals involving advanced artificial intelligence systems and related intellectual property, especially where technology and teams moved across jurisdictions ahead of an acquisition.
