CHINA PROBE OF META'S MANUS DEAL RATTLES AI STARTUPS
INDUSTRY DESK■ 1 MIN READ
THU, APR 16, 2026
China's investigation into Meta's acquisition of AI startup Manus has spooked local founders and disrupted a common exit strategy. Several startups are now considering relocating operations or moving entirely out of the country.
The government scrutiny has created uncertainty for Chinese AI entrepreneurs seeking to sell to foreign tech giants or raise capital from U.S. venture firms. Startups with global ambitions face renewed pressure to choose between staying in China with Asian funding or relocating to friendlier regulatory environments.
Some founders are exploring Singapore as an alternative hub, balancing access to Asian markets with reduced regulatory risk. Others plan to maintain China operations while shifting certain functions abroad.
AI startups focused primarily on domestic markets and backed by Chinese venture capital express less concern. However, the investigation signals Beijing's growing scrutiny of tech deals involving data and intellectual property transfers to foreign companies.
The situation reflects broader tensions between China's desire to nurture a competitive tech sector and its efforts to control sensitive technology exports and foreign acquisitions of homegrown companies.
Reno-based AI chip startup Positron is in talks to raise approximately $750 million across two funding phases, with valuations climbing from $3.5 billion to $5 billion, according to Bloomberg sources.
AI coding platform Lovable is in talks to raise $300 million at a $13.2 billion valuation, doubling its previous valuation. Menlo Ventures is expected to lead the funding round.
Autonomous drone delivery startup Manna is establishing a U.S. operations and manufacturing facility in Tulsa, Oklahoma. The expansion will eventually create 1,000 jobs.