Meta Platforms has initiated the process of dismantling its $2 billion acquisition of Manus, a Chinese-founded AI startup, in response to an order from Beijing. This move involves severing operational ties and halting data sharing between the two companies.
In December 2025, Meta announced its acquisition of Manus, aiming to enhance its capabilities in AI agents. Manus, known for developing a general-purpose AI agent, had relocated its headquarters from China to Singapore prior to the acquisition. However, in April 2026, China’s National Development and Reform Commission (NDRC) blocked the deal, citing national security concerns and ordering the transaction to be unwound.
To comply with the NDRC’s directive, Meta has implemented measures to separate itself from Manus. These steps include cutting off Manus employees from accessing Meta’s internal systems and instructing Meta staff to cease using Manus tools for internal projects. Additionally, Meta is phasing out Manus’s platform and transitioning its projects to Meta’s infrastructure.
Meanwhile, Manus’s co-founders are reportedly exploring options to reclaim the startup. They have engaged in preliminary discussions to raise approximately $1 billion from external investors, aiming to repurchase the company from Meta. This effort could lead to the establishment of a Chinese joint venture and a potential listing in Hong Kong, a market that has recently seen a surge in AI-related IPOs.
This development underscores Beijing’s determination to maintain control over strategically sensitive technologies, regardless of a company’s offshore incorporation. The situation also highlights the complexities and challenges that arise in cross-border technology acquisitions, especially in the rapidly evolving AI sector.
As Meta navigates the unwinding process, the tech industry will be closely watching how this situation unfolds. The outcome could have significant implications for future international tech deals and the global AI landscape.
