Key facts
- Meta is reportedly moving to unwind its $2 billion acquisition of AI startup Manus.
- The decision follows a Chinese government order to reverse the deal due to national security concerns.
- Meta has begun operational separation, cutting Manus off from its internal systems.
- Manus's original Chinese investors are exploring raising funds to buy back the startup.
- The potential buyback is being considered at the original $2 billion valuation.
Meta has begun dismantling its $2 billion acquisition of AI startup Manus, a move that complies with a Chinese government order to reverse the deal on national security grounds. The tech giant has initiated an operational separation, cutting Manus off from its internal systems and halting data sharing.
According to reports, the Chinese government issued the divestiture order approximately two months ago. This intervention underscores Beijing's intent to maintain control over strategically sensitive technologies, regardless of a company's offshore incorporation.
Manus's founders and early investors, including Tencent and Benchmark, are reportedly exploring options to reclaim the startup. Preliminary discussions involve raising around $1 billion from outside investors to repurchase Manus at its original $2 billion valuation. Such a move could potentially lead to a Chinese joint venture structure and a future listing in Hong Kong, a market that has seen an increase in AI startup listings.
The acquisition, initially announced in December 2025, had drawn scrutiny from Chinese regulators over potential violations of technology export controls and foreign investment rules. Manus, known for its AI agent technology, had relocated its staff to Singapore in mid-2025 prior to the acquisition.