Meta Unwinds $2B Manus AI Deal After Beijing Orders Breakup
Meta Platforms has begun dismantling its $2 billion acquisition of Chinese-founded AI startup Manus, complying with Beijing’s April order to reverse the deal under China’s foreign investment security review. Since June 1, 2026, Meta has barred Manus staff from its internal data systems and is migrating projects to its own platforms. Manus, which relocated to Singapore in 2025, is now a cautionary example of “Singapore washing” and highlights the reversibility risk of Chinese-origin AI assets for US tech firms amid the intensifying US-China tech race.
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Manus Original Investors Plan to Buy Back AI Firm from Meta for US$2 Billion
Early Chinese investors in AI startup Manus, including HSG, ZhenFund, and Tencent, are planning to buy the company back from Meta for US$2 billion, the price Meta paid in December 2025. The buyback follows a Chinese government order for Meta to unwind the acquisition due to tightened scrutiny of US investment in Chinese AI startups. Manus, which develops autonomous AI agents, has seen its annualized revenue run rate surge to between US$400 million and US$500 million, up from US$100 million at the time of Meta's acquisition. The firm is also considering restructuring as a joint venture incorporated in China to facilitate a Hong Kong stock market listing. Early investor Benchmark will not participate in the buyback. The report, from The Information, could not be independently verified by Reuters.
The Business TimesManus Original Investors Plan to Buy Back AI Firm from Meta for US$2 Billion
According to a report from The Business Times Singapore, early investors in the AI firm Manus, including HSG, ZhenFund, and Tencent, are planning to buy back the company from Meta for approximately US$2 billion. The buyback involves restructuring Manus into a joint venture incorporated in China. The report, published on June 19, 2026, indicates that the original backers are seeking to reacquire the artificial intelligence firm from the social media giant. The deal highlights ongoing dynamics in the AI investment landscape and the strategic value placed on Manus by its early supporters.
The Business TimesManus Original Investors Plan to Buy Back AI Firm from Meta for $2 Billion
Early Chinese backers of AI startup Manus, including HSG, ZhenFund, and Tencent, plan to buy the company back from Meta at the $2 billion price Meta paid last December, according to The Information. This follows a Chinese government order for Meta to unwind the acquisition due to tightened scrutiny of U.S. investment in Chinese advanced AI startups. Since the Meta deal, Manus has grown significantly, with its annualized revenue run rate surging from $100 million to between $400 million and $500 million. Meta has internally split operations from Manus and halted data sharing. Manus is considering restructuring as a Chinese joint venture to pursue a Hong Kong stock exchange listing. Benchmark will not participate in the buyback. Reuters could not independently verify the report.
Yahoo FinanceMeta Unwinds $2 Billion Manus Deal; Geopolitical Risks Weigh on META Stock
Meta Platforms is dismantling its $2 billion acquisition of Chinese-founded AI startup Manus after China's NDRC ordered the deal reversed in April 2026 under foreign investment security review. Meta is erecting a data firewall, blocking Manus staff from internal systems, and migrating projects to its own platforms. The forced reversal signals extended Beijing jurisdiction over Chinese-origin tech talent. The $2 billion write-down is manageable for Meta ($1.44T market cap), but introduces new geopolitical risk for AI acquisitions. META stock dipped marginally; analysts remain bullish with $827 average target (40%+ upside). Manus founders seek $1B in outside funding for buyback. Meta's broader AI buildout, including partnerships with Reliance Industries and AMD, continues unimpeded.
Yahoo FinanceMeta unwinds $2 billion Manus acquisition after China order
Meta is operationally separating from Manus, the agentic AI startup it acquired for $2 billion in December 2025, after China's National Development and Reform Commission ordered the deal reversed in April 2026. Meta has cut Manus's access to internal data systems and barred employees from using Manus tools, calling it a 'sunsetting' of the startup. The three founders—Xiao Hong, Ji Yichao, and Zhang Tao—are exploring raising $1 billion from outside investors to fund a buyback at the $2 billion valuation, potentially leading to a Hong Kong IPO. The reversal is complicated by early backers like Tencent, ZhenFund, and HSG having already been paid out. China is formalizing its reach over such transactions with new outbound investment rules taking effect July 1, expanding regulators' ability to block or reverse cross-border deals involving Chinese-origin technology, talent, or data regardless of incorporation location.
Yahoo FinanceMeta Begins Dismantling $2 Billion Manus Acquisition on Beijing's Orders
Meta Platforms has begun dismantling its $2 billion acquisition of Chinese-founded AI startup Manus, complying with Beijing's unprecedented April order to reverse the deal. Meta completed an operational split, stopping Manus tool usage and blocking data access. The move follows China's tightening of tech export controls amid the escalating U.S.-China tech race. Manus, which relocated to Singapore to shed its Chinese image, has become a cautionary tale. Analysts note that Chinese-origin AI now carries 'reversibility risk' and that the unwind process may be messy, sending a strong signal to both tech entrepreneurs and Washington about the limits of regulatory arbitrage.
US Top News and AnalysisMeta Begins Dismantling $2 Billion Manus Acquisition After Beijing Orders Unwind
Meta Platforms has reportedly begun dismantling its $2 billion acquisition of Chinese-founded AI startup Manus, complying with Beijing's unprecedented April order to reverse the deal. According to a Bloomberg report, Meta has completed an operational split, blocking Manus staff from accessing its internal data systems and ordering employees to stop using Manus tools. The move follows Chinese regulators' order under the country's foreign investment security review mechanism, marking a test case for China's willingness to safeguard strategic technology and talent. Beijing has since tightened tech export controls on cross-border deals involving strategic assets amid the intensifying US-China tech race. Manus, which relocated its headquarters and core teams to Singapore before the December acquisition, has become a cautionary tale for Chinese startups attempting to shed their Chinese image through 'Singapore washing.' Experts note that the unwind highlights the 'reversibility risk' of Chinese-origin AI assets for US tech firms.
US Top News and AnalysisMeta Severs Ties with AI Startup Manus After Chinese Government Orders Breakup of $2 Billion Deal
Meta has completed the separation of its operations from Manus, a Chinese-founded agentic AI startup it acquired for roughly $2 billion in December 2025. According to a Bloomberg report, Manus employees have been locked out of Meta's internal data systems since June 1, 2026, and Meta staff are barred from using Manus tools. An internal memo indicates Meta is 'sunsetting' the platform, migrating existing Manus projects to its own systems. This split is the first concrete step in complying with Beijing's April order to reverse the acquisition. Meanwhile, Manus's three founders are attempting to raise approximately $1 billion to buy their company back.
Latest from Tom's HardwareMeta Severs Ties with Chinese AI Startup Manus After Beijing Orders Deal Reversal
Meta has completed the separation of its operations from Manus, a Chinese-founded agentic AI startup it acquired for roughly $2 billion in December. According to Bloomberg, Manus employees have been locked out of Meta's internal systems since the start of the month, and Meta is 'sunsetting' the platform, migrating existing projects to its own systems. This split is the first concrete step in complying with an April order from China's National Development and Reform Commission (NDRC) to reverse the acquisition under its foreign investment security review mechanism. It marks the first time Beijing has forcibly reversed a completed cross-border AI acquisition. The founders—Xiao Hong, Ji Yichao, and Zhang Tao—are reportedly attempting to raise around $1 billion to buy back the company at a valuation at least matching Meta's $2 billion payment. However, Meta's engineers have already absorbed Manus's model weights and know-how over six months, complicating full compliance. Early backers including Tencent, ZhenFund, and HSG have already received their proceeds from the sale.
Latest from Tom's HardwareMeta Severs Ties with Chinese AI Startup Manus After Beijing Orders Breakup of $2 Billion Deal
Meta has completed the operational separation from Manus, a Chinese-founded agentic AI startup it acquired for roughly $2 billion in December. Manus employees have been locked out of Meta's internal systems, and Meta is 'sunsetting' the platform, migrating existing projects to its own systems. This is the first concrete step in complying with China's National Development and Reform Commission (NDRC) order to reverse the acquisition under its foreign investment security review mechanism. The NDRC asserted jurisdiction despite Manus having moved its headquarters to Singapore. The order also barred co-founders Xiao Hong and Ji Yichao from leaving mainland China. The founders are now attempting to raise about $1 billion from outside investors to buy back the company at a valuation at least matching Meta's purchase price. The article notes that while Meta can return equity and IP, the knowledge gained by Meta's engineers from Manus's model weights and know-how cannot be easily recalled.
Latest from Tom's HardwareMeta begins unwinding Singapore-based Manus deal by splitting operations, data
Meta, the parent company of Facebook, has started to unwind its deal with Manus, an agentic AI service that originated in China but relocated its headquarters to Singapore in 2025. The move involves splitting operations and data, effectively erecting a firewall between Meta and Manus. This development, reported by The Business Times on June 11, 2026, signals a strategic separation likely driven by regulatory or geopolitical concerns. The article highlights the ongoing complexities in cross-border AI partnerships, particularly involving Chinese-linked entities.
The Business TimesMeta begins unwinding Singapore-based Manus deal by splitting operations, data
Meta, the owner of Facebook, has started to unwind its deal with the AI firm Manus, which relocated to Singapore in 2025. The company has effectively established a firewall between itself and Manus by barring the AI firm and its staff from accessing Meta's internal data systems since the beginning of June. This move marks a significant step in separating operations and data, signaling a reversal of their previous collaboration. The decision reflects growing concerns over data security and operational independence, as Meta seeks to distance itself from Manus amid potential regulatory or strategic shifts. The article, published by The Business Times on June 11, 2026, highlights the operational and data separation as a key development in the tech industry's evolving landscape.
The Business TimesMeta begins unwinding Manus deal by splitting operations and data
Meta Platforms, the owner of Facebook and Instagram, has started to unwind its deal with the agentic AI service Manus by erecting a firewall between the two entities. Since the beginning of June 2026, Meta has barred Manus and its staff from accessing the US company's internal data systems. This move effectively splits operations and data, distancing Meta from the AI service. The article, published by The Business Times Singapore on June 11, 2026, highlights a significant shift in Meta's strategy regarding its partnership with Manus, though the full implications and reasons for the unwinding are not detailed in the provided text.
The Business Times