Meta is preparing to backtrack its acquisition of AI startup Manus, the Wall Street Journal reported late on Monday, after China banned the transaction, citing national security concerns.
Facebook owner Meta announced in December that it had agreed to acquire Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore.
But China’s top body for economic planning, the National Development and Reform Commission, said in a statement on Monday that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition.
The statement did not specifically name Meta.
Meta had told AFP in a statement on Monday that “the transaction complied fully with applicable law.”
“We anticipate an appropriate resolution to the inquiry,” it added.