June 29 (Reuters) – Chinese food delivery giant Meituan (3690.HK) said on Thursday that Wang Huiwen, co-founder and former director of artificial intelligence (AI) company Lightyear, aims to develop its own generative programs. announced the acquisition of Mr. love.
The deal comes at a time when AI has captured the attention of investors around the world, with a flurry of investments and acquisitions by companies like ChatGPT rushing to develop generative AI.
Lightyear’s transaction total includes $233.7 million in cash and 366.9 million yuan ($50.66 million) worth of debt, as well as the previous investment fund of the AI company, an investment fund by Sequoia Capital China Growth Fund VII. It includes a $28 million payment to investor HongShan, Meituan said.
The deal will allow Meituan, which is 18.7% owned by online advertising giant Tencent (0700.HK), to strengthen its position in China’s AI sector.
Light Year has approximately $285 million in net cash as of June 29, is involved in large-scale language model research and development, and was founded by Wang, who helped found Meituan in 2010. and managed.
Wang stepped down as a non-executive director of the food delivery giant on Sunday for health reasons.
After the transaction closes, Meituan will have 100% control over Light Year.
Reporting by Navya Mittal and John Biju in Bangalore.Editing: Shailesh Kuber
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