China blocks Meta’s $2B AI deal, raising global tech risks

China blocked Meta's $2B Manus acquisition over security concerns, signaling tighter AI controls and raising uncertainty for global tech and crypto capital flows.

China has blocked Meta's $2 billion acquisition of AI startup Manus, citing national security and technological concerns. The National Development and Reform Commission ordered Meta to unwind the deal, prohibiting foreign investment in Manus and requiring both parties to reverse the transaction. Manus, originally founded in China and later relocated to Singapore, develops autonomous AI agents for complex tasks. Although the deal had already been completed months earlier, regulatory scrutiny intensified, with Manus executives barred from leaving China during the review process. This move signals China's tightening control over AI talent and technology exports, reflecting the strategic importance of artificial intelligence in the ongoing US-China tech rivalry. The decision has led to uncertainty in the AI market, particularly for Chinese firms like Alibaba, and highlights the increasing political risks associated with cross-border AI mergers and acquisitions. Meta's AI expansion strategy now faces new obstacles, and the broader environment for international AI and crypto capital flows is under renewed pressure.