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The Chinese government has handed Mark Zuckerberg’s Meta a deadline to undo its $2.5 billion acquisition of AI startup Manus, citing national security concerns. Citing sources familiar with the matter, a report by The Wall Street Journal claimed that Beijing has given the tech giant just a few weeks to completely “disentangle” itself from the startup and return its assets to their original state.
The report claimed that the order from the National Development and Reform Commission (NDRC) marks a dramatic intervention in a global tech deal in which Meta acquired the Singapore-based, China-linked Manus in December to bolster its “AI agent” capabilities.
What it means to ‘unwind’ deal
Since December, Meta has already integrated Manus’s advanced AI technology into its own systems. Beijing’s order specifically requires Meta to remove any previously transferred technology or data from Meta’s servers, fully return all Chinese assets to their original condition, and allow the startup’s founders to depart Meta as part of the rescission.