Tencent leads consortium to buy AI startup Manus from Meta after Beijing blocks deal
Chinese gaming giant Tencent is in talks to become the largest shareholder of Singapore-based AI startup Manus, following Beijing’s order for Meta to unwind its $2 billion acquisition. Tencent, along with original investors ZhenFund and HSG, plans to repurchase Manus for at least $2 billion. The deal was blocked amid rising U.S.-China tech tensions, with China viewing the acquisition as a threat to its AI assets. Manus, which develops autonomous AI agents, relocated from China to Singapore last year.
Editorial summary awaiting refresh
Cross-source coverage
Wire timeline
Tencent in Talks to Buy Back AI Startup Manus from Meta After Beijing Intervention
Tencent is reportedly leading negotiations to acquire Manus, a Chinese AI startup, from Meta for $2 billion, following a directive from Beijing to unwind the surprise acquisition. The Chinese government ordered the deal's dissolution six months after Meta's purchase, citing concerns over strategic AI assets and technology hollowing out. Tencent, an early investor in Manus, is assembling a consortium including Chinese venture capital firms ZhenFund and HSG, while former U.S. investors like Benchmark are unlikely to participate. The move reflects China's increasing protectiveness of its AI sector amid U.S.-China tech rivalry, with officials calling Meta's acquisition a conspiratorial attempt to weaken China's technology base. Meta has agreed to undo the deal but has had months to study Manus's models. Manus, which generates $500 million in annual revenue, would complement Tencent's growing AI focus, particularly in agentic AI, according to Tencent president Martin Lau.
Latest from Tom's HardwareTencent in Talks to Buy Back AI Startup Manus from Meta After Beijing Intervention
Tencent is reportedly leading negotiations to acquire Chinese AI startup Manus from Meta for $2 billion, following a directive from Beijing to unwind the surprise acquisition. Meta had purchased Manus, known for advanced AI agents, but Chinese officials ordered the deal reversed, viewing it as an attempt to hollow out China's technology base. Tencent, an early investor in Manus, is assembling a consortium including former Chinese investors ZhenFund and HSG, while former U.S. investors like Benchmark are unlikely to participate. The move reflects Beijing's increasing protectiveness of AI companies as strategic assets amid U.S.-China tech rivalry. Manus, which generates $500 million in annual revenue, would complement Tencent's growing AI focus, particularly in agentic AI. Meta has agreed to unwind the deal but had months to study Manus' technology. The startup must now raise the capital to repay Meta, a challenge given the short timeframe.
Latest from Tom's HardwareTencent in Talks to Acquire Manus from Meta After Beijing Orders Deal Unwinding
Tencent is reportedly in talks to lead a consortium to buy back Chinese AI startup Manus from Meta for $2 billion, following Beijing's intervention. Meta had acquired Manus, known for advanced AI agents, but Chinese regulators ordered the deal unwound six months later, viewing it as a threat to China's technology base. Tencent, an early investor in Manus, is working with former Chinese investors like ZhenFund and HongShan Capital to raise the funds, while U.S. investors like Benchmark are unlikely to participate. The move reflects Beijing's increasing protectiveness of AI assets amid U.S.-China tech rivalry. Meta has already agreed to unwind, and Manus has been operating independently, but still needs to repay the $2 billion. Tencent believes Manus' AI agent technology aligns with its platform strategy, including WeChat, and its annual revenue of $500 million makes it a valuable asset.
Latest from Tom's HardwareTencent in talks to become Singapore-based AI startup Manus’ largest shareholder, sources say
Chinese internet giant Tencent is in discussions to become the largest shareholder of Singapore-based AI startup Manus, following Beijing's order for Meta to unwind its US$2 billion acquisition of the company. Sources indicate that Tencent, along with Manus' original investors including ZhenFund and HSG, plans to repurchase the startup from Meta for no less than US$2 billion. The deal was blocked by China in April amid rising geopolitical tensions, marking a high-profile case of Beijing challenging a cross-border transaction involving a non-China-incorporated firm. Since the order, Meta has internally split from Manus and stopped data sharing. Manus, which develops AI agents capable of autonomous task execution, moved its operations from China to Singapore last year and was hailed as China's next DeepSeek in early 2025.
The Business TimesTencent in Talks to Become Largest Shareholder of Singapore AI Startup Manus
Chinese tech giant Tencent is in negotiations to become the largest shareholder of Singapore-based AI startup Manus, according to sources. This development follows an order from Beijing requiring Meta to unwind its $2 billion acquisition of the firm. The talks involve Tencent and Manus' original investors planning to repurchase shares, as investors seek alternative arrangements after the regulatory intervention. The deal would reshape ownership of the AI startup amid heightened scrutiny of foreign investments in Chinese-linked technology companies.
The Business TimesTencent in talks to become AI startup Manus' largest shareholder, sources say
Chinese gaming and internet giant Tencent is in discussions to become the largest shareholder of AI startup Manus, following Beijing's order for Meta to unwind its $2 billion acquisition of the company. According to sources, Tencent, along with Manus' original investors ZhenFund and HSG, plans to buy the company back from Meta for no less than $2 billion. Manus, which develops AI agents capable of autonomous task execution, relocated its operations from China to Singapore last year. Meta had announced the acquisition in December to bolster its agentic AI work, but China launched a review in April over potential investment rule violations. The order marks a high-profile case of China blocking a cross-border transaction amid rising geopolitical tensions. Manus was previously hailed as China's next DeepSeek after releasing what it claimed was the world's first general AI agent.
Yahoo Finance