(Yicai Global) June 30 -- Meituan has agreed to acquire Light Year, an artificial general intelligence startup set up a few months ago by the Chinese takeout giant’s co-founder, for USD284.7 million.

Meituan will pay USD234 million in cash and take on Light Year’s CNY366.9 million (USD50.5 million) of liabilities, the Beijing-based buyer said in a stock exchange filing yesterday. Light Year has about USD285 million of cash.

Wang Huiwen, who quit as Meituan’s vice president in 2020, said in February that he had invested USD50 million to launch an AI startup valued at USD200 million, aiming to create the “OpenAi for China.” Over the next two months Light Year built a team, attracting top AI experts, sources said in April. The team has 70 members after the firm bought large language model developer OneFlow.

By acquiring Light Year, Meituan has the opportunity to strengthen its competitiveness in the fast-growing AI sector and better fulfill its mission of “we help people eat better, live better,” Meituan noted in the filing.

In March, Meituan’s other co-founder and Chief Executive Officer Wang Xing said he would join the startup’s Series A fundraiser and serve as a director. Wang relinquished his remaining roles in Meituan, including non-executive director and other key positions, on June 26, citing poor health.

According to a source, Wang has been admitted to a hospital after being diagnosed with depression, so he cannot continue to hold his leading role in Light Year. The firm raised more than the rumored USD230 million through the Series A round last month, the source added.

Meituan’s shares [HKG: 3690] closed down 1.2 percent at HKD122.30 (USD15.61) in Hong Kong today. The stock has fallen 30 percent since the end of last year.

Editors: Zhang Yushuo, Futura Costaglione