Meta unwinds $2B Manus deal after Beijing forces divestiture

Meta has begun dismantling its $2 billion acquisition of Manus, completing an operational separation from the Chinese-founded AI startup and halting data sharing between the two companies. This is the most concrete step yet toward complying with a divestiture order Beijing issued roughly two months ago on national security grounds. Meta has cut Manus off from its internal systems, 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.

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. Even as Meta moves to sever ties, Manus has continued shipping new features with integrations like Similarweb and Shopify. Manus drew widespread attention with a viral agent demo, relocated its staff to Singapore in mid-2025, and announced the $2B Meta acquisition in December. Chinese regulators scrutinized the transaction earlier this year citing technology export controls. Investors like Benchmark have already received proceeds, while Asian backers including Tencent, HSG, and ZhenFund will cooperate with the unwinding. Senator John Cornyn had questioned U.S. capital flowing to a Chinese-linked firm.