Meta reportedly strikes to unwind $2B Manus deal after Beijing’s demand

Meta has begun dismantling its $2 billion acquisition of Manus, finishing an operational separation from the Chinese language-founded AI startup and halting information sharing between the 2 corporations. That is probably the most concrete step but towards complying with a divestiture order Beijing issued roughly two months in the past on nationwide safety grounds.

Meta has lower Manus off from its inner methods, Bloomberg reported, stopping workers from utilizing Manus instruments for inner tasks as the 2 corporations transfer towards a full separation.

In the meantime, in accordance with Could experiences, the co-founders of Manus have held preliminary discussions about elevating roughly $1 billion from exterior buyers to reclaim the startup from Meta, a transfer that might pave the way in which for a Chinese language three way partnership construction and an eventual itemizing in Hong Kong, a venue that has seen a surge in AI listings this 12 months for Chinese language AI startups like MiniMax and Zhipu.

What was speculated to be a landmark exit for Chinese language AI is rapidly unraveling. The transfer underscores Beijing’s dedication to retain management over strategically delicate know-how, no matter an organization’s offshore incorporation.

Along with the compelled divestiture, Chinese language authorities have since expanded journey restrictions to researchers and executives at non-public companies, requiring authorities approval earlier than heading overseas. China is additionally tightening its grip on overseas capital, with experiences indicating that prime AI companies, together with Moonshot AI, StepFun, and ByteDance, will want authorities sign-off earlier than accepting U.S. funding, including one other layer to Beijing’s sweeping effort to manage its AI sector.

Whilst Meta strikes to sever ties with Manus, the agentic AI startup has continued to ship new options, rolling out integrations with Similarweb and Shopify.

Manus drew widespread consideration with a viral agent demo relocated its employees to Singapore in mid-2025 earlier than saying a $2 billion acquisition by Meta in December. Chinese language regulators moved to scrutinize the transaction earlier this 12 months, citing potential violations of know-how export controls and overseas funding guidelines.

Manus buyers, together with California-based enterprise agency Benchmark, have already obtained their proceeds from the acquisition, whereas Asian backers, together with Tencent, HSG, and ZhenFund, have indicated they’ll cooperate with the unwinding course of, in accordance with the WSJ.

Manus’ Chinese language origins with dad or mum firm Butterfly Impact drew scrutiny on either side of the Pacific, with Senator John Cornyn questioning whether or not American capital ought to circulation to a Chinese language-linked agency.

Meta and Manus didn’t instantly reply to a request for remark exterior common enterprise hours.