The competitive landscape between the U.S. and China in the artificial intelligence sector has reached an intense level, characterized by substantial investments from China into domestic AI models and stringent control over its technology industry. Meanwhile, there is a notable trend of Chinese AI talent migrating to American companies. A study conducted by the Carnegie Endowment reported that as of 2019, 87 of the top 100 Chinese AI researchers at U.S. institutions remained in America by late last year.
In a striking development, Manus, a prominent Chinese AI startup, discreetly transitioned its operations to Singapore and subsequently sold itself to Meta for $2 billion. This transaction raises crucial questions about the implications of such a move.
Industry insiders will recall Manus's rapid ascent, which began in spring of the previous year with an impressive demonstration featuring an AI agent capable of screening job applicants, planning travel itineraries, and analyzing financial portfolios. The startup also claimed superiority over OpenAI's Deep Research. Shortly thereafter, Benchmark, a leading venture capital firm in Silicon Valley, spearheaded a $75 million funding round, valuing Manus at $500 million—an outcome that prompted scrutiny and concern among U.S. lawmakers, including Senator John Cornyn, who expressed his disapproval on social media.
By December, Manus boasted millions of active users and achieved over $100 million in annual recurring revenue. Mark Zuckerberg, betting heavily on AI for Meta’s future, seized this opportunity to acquire Manus for $2 billion.
It is important to highlight that Manus did not merely sell to a U.S. buyer; it invested significant effort into distancing itself from the influence of China throughout the previous year. The company relocated its headquarters and primary operations from Beijing to Singapore, restructured its ownership model, and post-acquisition, Meta committed to severing ties with Manus’s Chinese investors while ceasing all operations in China. Clearly, Manus aimed to establish itself firmly as a Singaporean entity.
This series of events, while notable in Washington, surely caused alarm in Beijing. The Chinese possess a term that aptly captures this phenomenon: "selling young crops," referring to domestic AI firms that relocate and choose to sell to foreign entities before reaching their full potential, thereby taking valuable intellectual property and expertise abroad.
Techcrunch event
Disrupt 2026: The tech ecosystem, all in one room
Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400.
Save up to $300 or 30% to TechCrunch Founder Summit
1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth.
Share this story