China’s artificial intelligence (AI) race may be entering a new phase, and Tencent Holdings Limited (TCEHY) appears determined to secure a front-row seat. After Meta Platforms (META) $2 billion acquisition of Manus was derailed by Chinese regulators, Tencent is reportedly emerging as the leading candidate to back one of the world’s fastest-growing AI startups. If completed, the deal would deepen Tencent’s AI ambitions while strengthening its position in the rapidly evolving AI agent market.
According to reports, Tencent is in talks with Manus’ original investors, including HSG and ZhenFund, to repurchase the Singapore-based AI startup at a valuation of no less than $2 billion. Tencent is expected to become Manus’ largest shareholder. The proposed transaction follows Beijing’s order requiring Meta to unwind its acquisition over concerns that AI technology developed in China could fall under export-control and national security rules.
