AI Race Gets Political: China Reacts to Meta’s $2B Manus AI Buy
Manus AI to shut its operations in China. China isn’t letting its AI talent slip away without a fight. An investigation is underway, and founders are asked not to leave the country.
AI has become more than a tech race. The United States and China are in a big AI battle to build the world's most powerful AI. China is doing all it can to win it. The country is spending billions on its own AI companies, keeping tight control over tech firms, yet its best talent is moving to the U.S. This, in fact, is concerning China. More specifically, Manus AI is a fast-growing Chinese AI startup (with millions of users and $100 million-plus in annual revenue).
The company first moved from Beijing to Singapore, only to be acquired by Mark Zuckerberg for $2 billion. Later, Zuckerberg promised to cut ties with Chinese investors and shut Manus operations in China. Therefore, China no longer wants to give away its talent to its rival. They even have a phrase for it: "Selling young crops." So, is China taking action against the company? Did the company totally stop operating in China? What's China's reaction? For all that, learn more.
Why Is the Manus Acquisition by Mark Zuckerberg Controversial?
After the acquisition, Meta promised to cut ties with Chinese investors and to shut down operations in the country altogether. Cutting ties with the home country didn't make sense to China. For China, this is dangerous because they lose AI technology and talent. It has quickly become an issue about power, economy, and global dominance. Here’s the timeline of what exactly happened when exactly.
Manus AI Story: Timeline of Events
Final Thoughts... China’s Reaction to the Meta & Manus AI Issue
China doesn't take things lightly; the classic example is Jack Ma (Alibaba founder), who criticised regulators in 2020 and disappeared from public view. The company's IPO was brutally cancelled, and it was fined a whopping $2.8 billion. In Manus' case, the founders Xiao Hong and Ji Yichao are called in by the National Development and Reform Commission.
China is closely investigating the Meta deal with Manus AI. The founders are asked not to leave the country, and for now, there are no official statements or charges. We'll have to wait for more updates. Till then, keep in touch.