US Treasury Probes Benchmark Capital’s $75M Investment in China’s Manus AI

The US Treasury Department has launched an investigation into Benchmark Capital’s $75 million investment in Chinese artificial intelligence firm Manus AI. This MOVE intensifies the ongoing tech rivalry between Washington and Beijing, as the Biden administration seeks to enforce new restrictions on sensitive technology transfers.

The inquiry focuses on whether the Silicon Valley venture firm’s deal falls under recent outbound investment regulations. These rules, finalized earlier this year under President Biden’s 2023 executive order, require disclosure of certain investments in critical sectors like AI that could potentially enhance foreign military capabilities.

The scrutiny reflects growing Washington concerns about maintaining US technological leadership amid rising competition with China. Treasury officials have reportedly contacted Benchmark directly regarding the transaction’s compliance with the new national security framework.