Meta gives up control of Chinese AI startup Manus after eight months

Meta has relinquished control of Chinese AI startup Manus following the dissolution of its acquisition last year. Chinese regulators initially blocked the deal due to concerns over potential violations of Chinese export controls. In April, the National Development and Reform Commission halted the purchase. As Manus reverts to an independent entity, it must comply with regulatory requirements by erasing user data collected during its tenure under Meta.

This outcome highlights the challenges faced by US and Chinese companies in establishing a foothold in the AI market. Both nations exhibit apprehension towards each other's involvement in AI development. In March, the US administration introduced a new cybersecurity policy, triggered by suspected Chinese involvement in a cyber-attack on the FBI.

Meanwhile, the US-China Economic and Security Review Commission cautioned that Chinese utilization of open-source AI tools might provide the country with an economic edge that the US cannot counteract through regulation. In the previous year, the US and China engaged in a game of cat and mouse over Nvidia chip exports, prompting customers of AI vendors in both countries to exercise caution regarding future cross-border acquisitions as the two superpowers vie for technological supremacy.