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One of China's most anticipated AI startups is undergoing a major change in its direction.
In a statement released Thursday, Meituan announced that it would acquire Light Years Beyond in its entirety for $233.7 million in cash. She also takes on the startup's $50.66 million debt.
The acquisition comes shortly after Meituan announced that Wang Huiwen was stepping down from all of her corporate positions at the food delivery giant due to health reasons. It was noted that Wang was diagnosed with depression, sparking a discussion about the mental health issues of entrepreneurs in China's tech community.
In a series of recruiting posts on Jike, a social networking site popular in the Chinese tech community, Wang first said he plans to personally invest $50 million in Light Years Beyond. It is possible that the startup received funding from the founder in the form of convertible debt that can be converted into equity, which corresponds to the company's debt of $50.66 million.
Thus, the total value of the transaction is about $284 million.
With no product, Light Years Beyond was originally valued at $200 million, as noted in one of Wang's Jike posts. This speaks to investors' confidence in the ingenuity of Wang's product and their desire to harness the potential of OpenAI for China.
