China Blocks Meta’s $2 Billion Bid for AI Startup Manus

The National Development and Reform Commission enforced compliance rules, halting a transaction that would have involved an agentic AI system capable of executing complex tasks without human input. This intervention brings state oversight directly into the global market for autonomous software agents.

By December 2025, Manus generated over $100 million in annual revenue, a milestone reached shortly after Meta advanced the acquisition plan. The startup’s performance on the GAIA benchmark, a test for real-world multi-step problems, exceeded OpenAI’s Deep Research agent by more than 10 percentage points in specific tasks.

The move solidifies China’s control over high-value AI assets within its borders. What to watch next is how domestic and international regulators balance rapid agentic AI development with national security and compliance requirements.