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

Meta starts dismantling its $2 billion Manus acquisition after Beijing ordered the deal reversed.

Meta has cut Manus off from its internal systems, Bloomberg reported, preventing employees from using Manus tools for internal projects as the two companies move toward a full separation. Meanwhile, according to May reports, the co-founders of Manus have held preliminary discussions about raising approximately $1 billion from outside investors to reclaim the startup from Meta, a move that could pave the way for a Chinese joint venture structure and an eventual listing in Hong Kong, a venue that has seen a surge in AI listings this year for Chinese AI startups like MiniMax and Zhipu. What was supposed to be a landmark exit for Chinese AI is quickly unraveling. The move underscores Beijing’s determination to retain control over strategically sensitive technology, regardless of a company’s offshore incorporation. In addition to the forced divestiture, Chinese authorities have since expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad. China is also tightening its grip on foreign capital, with reports indicating that top AI firms, including Moonshot AI, StepFun, and ByteDance, will need government sign-off before accepting U.S. investment, adding another layer to Beijing’s sweeping effort to control its AI sector. Even as Meta moves to sever ties with Manus, the agentic AI startup has continued to ship new features, rolling out integrations with Similarweb and Shopify. Manus, which went viral with a demo of its AI agent, relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition by Meta in December. Chinese regulators moved to scrutinize the transaction earlier this year, citing potential violations of technology export controls and foreign investment rules. Manus investors, including California-based venture firm Benchmark, have already received their proceeds from the acquisition, while Asian backers, including Tencent, HSG, and ZhenFund, have indicated they will cooperate with the unwinding process, according to the Wall Street Journal.