Meta Platforms’ multibillion-dollar acquisition of Manus, a Chinese-founded artificial intelligence agent start-up, has set off a mix of excitement and unease in China’s tech circles, opening what some see as a new “cash-out” route for AI entrepreneurs beyond the traditional IPO playbook.

Industry observers said the acquisition was made possible by two key developments: Manus’ progress in building a globally competitive general AI agent and the founders’ decision to relocate the business abroad.

Launched in Wuhan, the capital of central Hubei province, the start-up led by Xiao Hong severed its China links and moved its headquarters to Singapore in July, a step that helped it tap overseas capital and markets.

The multibillion-dollar price tag paid by Meta has instantly elevated the start-up into the top tier of China-linked AI successes by exit value.

By comparison, Zhipu AI – one of China’s best-known AI start-ups – was expected to raise about US$560 million in a Hong Kong listing, while MiniMax is likely to seek roughly US$538 million, according to market expectations.

Zhou Hongyi, chairman and chief executive of Chinese internet security firm Qihoo 360, called the acquisition a “victory for China’s AI road map”.