Meta bought Manus in December last year to accelerate AI development on the company's platforms. But China's National Development and Reform Commission launched an investigation in January and now claims that laws and regulations prevent the deal from going through.
The announcement comes a few weeks before a summit between President Donald Trump and Chinese leader Xi Jinping.
Manus was founded in China in 2022, but quickly moved operations and headquarters to Singapore.
It is unclear how Meta will handle China's halt to the deal. Meta has already paid the purchase price and brought Manus employees into its Singapore office.
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