Meta is actively dismantling its $2 billion acquisition of Manus, cutting off the Chinese-founded AI agent startup from its internal systems and ending data sharing between the two companies. According to Bloomberg, Meta has prevented employees from using Manus tools on internal projects as the firms move toward a full operational separation. The move is Meta's most concrete step yet toward complying with a divestiture order Beijing issued roughly two months ago on national security grounds, effectively unraveling what was supposed to be a landmark exit for Chinese AI.
The Manus co-founders are already exploring a path to reclaim the company, holding preliminary talks to raise approximately $1 billion from outside investors, per May reports. The new structure could take the form of a Chinese joint venture and clear the way for a Hong Kong listing—a venue that has attracted a wave of Chinese AI IPOs this year from startups like MiniMax and Zhipu. To underscore the broader crackdown, Beijing has expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad, and is now demanding that top AI companies including Moonshot AI, StepFun, and ByteDance obtain sign-off before accepting U.S. investment.
Manus, which relocated its staff to Singapore in mid-2025 before Meta announced the acquisition in December, has continued shipping product even amid the turmoil, rolling out new integrations with Similarweb and Shopify. Chinese regulators began scrutinizing the deal earlier this year, citing potential violations of technology export controls and foreign investment rules. California-based investor Benchmark has already received its proceeds from the original acquisition, while Asian backers including Tencent, HSG, and ZhenFund have indicated they will cooperate with the unwinding, according to the Wall Street Journal.