Game-Changing Acquisition: Meituan Snaps Up 'OpenAI for China' at $234M

China's AI startup, Light Years Beyond, founded by Meituan co-founder Wang Huiwen, is taking a new direction. Meituan announced its full acquisition of Light Years Beyond for $233.7 million in cash, along with assuming the startup's $50.66 million debt. 

The acquisition follows Wang Huiwen's resignation from all corporate roles at Meituan due to health reasons, reportedly diagnosed with depression. The deal raises discussions on mental health issues among entrepreneurs in China's tech community.

Meituan's agreement includes payments to various investors, totaling $234 million. Notably, Wang Huiwen had initially planned to invest $50 million personally in Light Years Beyond, potentially as convertible debt. The total purchase price of the deal amounts to $284 million.

Light Years Beyond, despite having no product, had a valuation of $200 million at its inception. This highlights investors' confidence in Wang's product ingenuity and the pursuit of an "OpenAI for China." However, limited spending and challenges in AI chip availability may have constrained progress.

While Meituan aims to "obtain" AI technology and talent through the acquisition, the absence of Wang's visionary leadership raises questions about the AI experts' inclination to join Meituan, primarily focused on on-demand neighborhood services. The journey of Light Years Beyond takes an unexpected turn.