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 firms. 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 programs, Bloomberg reported, stopping staff from utilizing Manus instruments for inner tasks as the 2 firms transfer towards a full separation.

In the meantime, in keeping with Might reviews, 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 best way 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 yr for Chinese language AI startups like MiniMax and Zhipu.

What was presupposed to be a landmark exit for Chinese language AI is rapidly unraveling. The transfer underscores Beijing’s willpower to retain management over strategically delicate expertise, 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 corporations, requiring authorities approval earlier than heading overseas. China is additionally tightening its grip on overseas capital, with reviews indicating that prime AI corporations, 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 regulate 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 asserting a $2 billion acquisition by Meta in December. Chinese language regulators moved to scrutinize the transaction earlier this yr, citing potential violations of expertise export controls and overseas funding guidelines.

Manus buyers, together with California-based enterprise agency Benchmark, have already acquired their proceeds from the acquisition, whereas Asian backers, together with Tencent, HSG, and ZhenFund, have indicated they are going to cooperate with the unwinding course of, in keeping with the WSJ.

Manus’ Chinese language origins with father or mother firm Butterfly Impact drew scrutiny on each 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.