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

Meta is dismantling its $2 billion acquisition of Manus, an AI startup with Chinese origins. This decision follows a divestiture order from the Chinese government, citing national security concerns. The move has led to an operational separation and a halt in data sharing between the two companies.

Manus co-founders are reportedly seeking $1 billion from outside investors to regain control of the company. This could potentially lead to a Chinese joint venture and a listing in Hong Kong, a popular venue for Chinese AI startups.

Beijing's demand underscores its intent to control strategically sensitive technology. In addition to forced divestitures, China has expanded travel restrictions for researchers and executives at private firms and is tightening its grip on foreign capital. Top AI firms in China now require government approval for U.S. investments.

Despite the unravelling acquisition, Manus continues to develop and ship new features, including integrations with Similarweb and Shopify. The initial acquisition by Meta in December followed Manus's relocation to Singapore in mid-2025, and it drew scrutiny from Chinese regulators over potential violations of export controls and foreign investment rules.