China Restricts Manus AI Founders as Meta's $2 Billion Acquisition Faces Scrutiny
Chinese authorities have barred two co-founders of the artificial intelligence startup Manus from leaving the company, according to a Financial Times report. This action comes amid an ongoing investigation into Meta's $2 billion acquisition of Manus, with regulators examining whether the deal violates foreign investment and national security regulations.
Founders Summoned for Beijing Meeting Amid Growing Tensions
The founders, Xiao Hong and Ji Yichao, were summoned to a meeting in Beijing this month with the National Development and Reform Commission. This development highlights China's increasing apprehension about sharing advanced technology with foreign entities, particularly in sensitive sectors like artificial intelligence.
No formal charges have been filed at this stage, and the investigation remains active. The situation underscores broader concerns within China about losing critical technological assets to international competitors, especially in rapidly evolving fields such as AI.
Background of Meta's Acquisition and Regulatory Review
Chinese authorities have been reviewing Meta's acquisition of Manus since January. The deal, announced in December 2025, is under scrutiny to assess potential national security risks and compliance with local regulations governing technology transfer and foreign investments.
Meta revealed the purchase as part of its strategy to develop AI agents—systems designed to perform complex tasks autonomously. The acquisition was seen as a rare instance of a major U.S. technology company acquiring an Asian AI startup, drawing significant attention globally.
Manus AI: From Startup Success to Acquisition Target
Manus had quickly gained international recognition as a success story among Chinese startups. Its rapid growth and eventual acquisition by Meta inspired other AI entrepreneurs in the country. The company employs approximately 100 staff members and was once hailed as the 'next DeepSeek' in AI innovation.
Scale of the Deal in Meta's Acquisition History
Meta's acquisition of Manus ranks among its largest purchases, following only the $19 billion acquisition of WhatsApp in 2014 and an up to $15 billion investment in Scale AI in early 2025. This highlights the strategic importance Meta places on advancing its AI capabilities through this deal.
The ongoing probe reflects heightened regulatory vigilance in China regarding technology transfers and foreign investments, particularly as artificial intelligence continues to be a focal point of global competition and national security considerations.
