Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has been dealt a significant blow in its pursuit to compete in the artificial intelligence race after China moved on Monday to block the social media giant's $2 billion acquisition of Manus, a Singaporean AI startup with Chinese roots.
Chinese regulators reviewed whether the deal violated Beijing's foreign investment rules before issuing the surprise decision, citing concerns over potential technology leakage to the US.
The commission stated it would "prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction." Officials did not offer further details about the ruling.
Meta had announced the acquisition of Manus, an agentic AI startup, in late December 2025 for an estimated $2 billion. Within weeks, China's commerce ministry launched an investigation.
The ruling deals a blow to Meta's efforts to close the gap with rivals in the rapidly evolving AI landscape, with the loss of Manus representing a costly setback as competition intensifies across the industry.