AI Sovereignty Crackdown: China Launches Antitrust Probe into Meta’s Manus Acquisition

AI Sovereignty Crackdown: China Launches Antitrust Probe into Meta’s Manus Acquisition

On January 8, 2026, the global technology landscape witnessed a seismic shift as China’s Ministry of Commerce officially launched an antitrust investigation into Meta’s $2.5 billion acquisition of Manus. The high-profile AI agent startup, though headquartered in Singapore, has become the epicenter of a geopolitical tug-of-war over intellectual property and talent. This move marks a significant escalation in Beijing’s efforts to assert jurisdiction over global mergers and acquisitions that involve technologies originating within its borders.

The probe into the Meta Manus acquisition highlights the growing concept of AI sovereignty, where nations treat artificial intelligence expertise as a critical national resource. As news of the investigation trended across financial forums and social media platforms, investors began to grapple with the reality of a bifurcated tech market. For Meta, this regulatory hurdle represents a direct challenge to its expansion strategy and its ability to consolidate the global AI talent pool.

The Meta Manus Acquisition: A Clash of Tech Titans

The Meta Manus acquisition was initially seen as a major win for Mark Zuckerberg’s company, securing a leader in the autonomous AI agent space. However, Manus’s deep roots in the Chinese research community have triggered Beijing’s "National Security and Data Sovereignty" protocols. Even though the company operates out of Singapore, many of its core developers and founding researchers are mainland-origin talents whose work China now deems vital to its own technological future.

Why Beijing is Asserting Jurisdiction

China’s decision to intervene in a deal between a US-based giant and a Singapore-based startup signals a new era of "long-arm" regulation. The Ministry of Commerce argues that the transfer of Manus’s proprietary algorithms to Meta constitutes an outward technology transfer that could undermine domestic competitiveness. This is no longer just about market share; it is about who controls the underlying logic of the next generation of artificial intelligence.

AI Sovereignty and the Global "Split-Internet"

The investigation into the Meta Manus acquisition is the clearest sign yet of a "Split-Internet" or tech decoupling. Regulators are now scrutinizing outward investments and acquisitions with the same intensity they once reserved for inbound capital. This shift suggests that AI intellectual property is being treated with the same level of protection as military secrets or critical infrastructure.

Implications for Future AI Ventures

For startups with diverse international teams, this probe creates a complex legal minefield. If a company employs significant talent from mainland China, it may find itself subject to Chinese regulatory approval regardless of where it is incorporated. This could potentially devalue cross-border AI ventures, as US firms may become hesitant to acquire companies that carry the risk of a Beijing-led antitrust crackdown.

Market Reaction and Investor Sentiment

Following the announcement, tech stocks showed increased volatility as analysts weighed the risks of further regulatory interference. The Meta Manus acquisition probe serves as a warning to the broader venture capital ecosystem that the era of friction-less global tech exits is coming to an end. Investors are now forced to consider geopolitical risk as a primary factor in AI valuations.