(Reuters) -Chinese food delivery giant Meituan said on Thursday that it is acquiring artificial intelligence (AI) company Light Year from its co-founder and former director Wang Huiwen, in a bid to develop its own generative AI.
The total deal includes $233.7 million in cash and 366.9 million yuan ($50.66 million) worth of debt, Meituan said.
The acquisition comes at a time when AI has captivated investor interest across the globe, prompting a flurry of investments or acquisitions by businesses in a rush to develop generative AI like ChatGPT.
The deal allows Meituan, in which online advertising giant Tencent holds an 18.7% stake, to strengthen its position in the AI landscape of China.
Light Year AI is an artificial general intelligence company involved in the research and development of large language models, and was founded and controlled by Huiwen who helped establish Meituan in 2010.
Meituan will control 100% of Light Year after completion of the deal.
(Reporting by John Biju in Bengaluru; Editing by Shailesh Kuber)
