Meta begins unwinding $2B Manus acquisition

Meta has begun dismantling its $2 billion acquisition of Manus, completing an operational separation from the Chinese-founded agentic AI startup—a term for AI systems capable of performing tasks autonomously. 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. This operational separation, which halts data sharing, is the most concrete step toward complying with a divestiture order Beijing issued roughly two months ago on national security grounds. A divestiture order is a government mandate requiring a company to sell off assets or business units.

The forced separation highlights Beijing’s tightening control over the AI sector. Chinese authorities have expanded travel restrictions to researchers and executives at private firms, requiring government approval before traveling abroad. Additionally, 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.

Manus, which relocated its staff to Singapore in mid-2025, was acquired by Meta in December. However, Chinese regulators scrutinized the transaction earlier this year, citing potential violations of technology export controls and foreign investment rules. To reclaim the startup, Manus co-founders have held discussions about raising approximately $1 billion from outside investors, according to May reports. This potential raise could pave the way for a Chinese joint venture structure and an eventual listing in Hong Kong. Despite the ongoing unwinding, Manus has continued to ship new features, rolling out integrations with Similarweb and Shopify.

Meanwhile, investors on both sides of the Pacific are navigating the unwinding process:

• California-based venture firm Benchmark has already received its proceeds from the acquisition.
• Asian backers, including Tencent, HSG, and ZhenFund, have indicated they will cooperate with the unwinding process.

The startup’s Chinese origins drew scrutiny on both sides of the Pacific, with Senator John Cornyn questioning whether American capital should flow to Chinese-linked firms. Meta and Manus did not immediately respond to requests for comment.

Why it matters

The move underscores Beijing’s determination to retain control over strategically sensitive technology, regardless of a company’s offshore incorporation.