HomeReportedly Considering Reversing the $2 Billion Manus Acquisition Amid Beijing’s Pressure
Meta has started winding down its $2 billion acquisition of Manus, officially ending operational ties with this AI startup founded in China and ceasing all data sharing between the two companies. This action represents the most concrete progress to date in fulfilling a divestiture order issued by Beijing about two months ago due to concerns over national security.
According to Bloomberg, Meta has also cut Manus off from its internal systems, preventing its employees from using Manus’ tools for internal projects as the two entities move closer to a complete separation.
As reported by May, the co-founders of Manus have held preliminary talks about raising around $1 billion from external investors in an effort to reclaim the startup from Meta. Such a move could lead to the creation of a Chinese joint venture and eventually a listing on the Hong Kong stock market, which has seen an increase in AI company listings this year, including those from firms like MiniMax and Zhipu.
What was initially seen as a significant milestone for Chinese AI companies is now falling apart at an accelerated pace. This development highlights Beijing’s firm commitment to maintaining control over technologies considered strategically important, regardless of whether a company is incorporated overseas.
In addition to the forced divestiture, Chinese authorities have tightened travel restrictions on researchers and executives from private firms, requiring government approval before they can travel abroad. The country is also strengthening oversight of foreign investment, with reports suggesting that leading AI companies such as Moonshot AI, StepFun, and ByteDance will need government approval before accepting investment from the United States. These measures add another layer to Beijing’s broader efforts to regulate its AI sector.
Even as Meta works to sever ties with Manus, the agentic AI startup has continued to release new features, including integrations with Similarweb and Shopify.
Manus gained widespread attention after a viral demonstration of its agent technology, prompting the company to relocate its staff to Singapore in mid-2025 before Meta announced its $2 billion acquisition in December. Chinese regulators began to closely examine the deal earlier that year, raising concerns about potential violations of technology export controls and foreign investment regulations.
According to the WSJ, Manus’ investors, including the California-based venture firm Benchmark, have already received their funds from the acquisition. Asian investors such as Tencent, HSG, and ZhenFund have indicated their willingness to cooperate with the process of ending the acquisition.
Given Manus’ Chinese origins and its parent company, Butterfly Effect, it attracted scrutiny on both sides of the Pacific. U.S. Senator John Cornyn questioned whether American capital should be invested in a company with Chinese ties.
Meta and Manus did not respond to requests for comment sent outside regular business hours.
Related article
Hexagon: More than half of adults excited by robots
Robots are increasingly integrated into business operations. Credit: HumanoidHexagon data reveals 59% of adults are excited to work with robots, but a rising “Robot Generation” of children is far more eager for AI workplacesNew data from Hexagon sugg
Meta Expands Subscription Push With New AI-Focused Plans
Meta launched Meta One on Tuesday, a new subscription tier delivering expanded AI capabilities and premium perks across Facebook, Instagram, and WhatsApp. Subscribers gain access to a suite of AI tools for image and video creation, alongside in-app f
Rival AI agents Instinct and Meta’s Muse now support calling features
The market for text-based AI assistants is fiercely competitive, with Instinct, Wajo, Town, Ollie, and Meta’s newly launched Muse agent all vying for user attention and task management. Based in San Francisco, Instinct has emerged as a leading conten
Related Special Topic Recommendations
chatbot
Top AI Customer Chatbots: Answer FAQs and Qualify Leads 24/7
2026 Latest Top-rated AI Customer Chatbots featured on this curated list are the best solutions for answering customer FAQs instantly and qualifying leads around the clock. XIX.AI has conducted rigorous real-world tests to deliver a detailed free vs paid comparison along with up-to-date rankings, helping you find a powerful game-changing tool that boosts productivity significantly. Explore now to Discover your perfect AI chatbot solution!
9 tools
xix.ai
Design & Art
AI Storyboard Generators for Ad Creative Teams
2026 Latest Best AI Storyboard Generators for Ad Creative Teams! XIX.AI has curated a top-rated list of powerful, game-changing tools that help teams create stunning visual content faster through real-world tests and rigorous weekly updated rankings. Enjoy a free vs paid comparison to find the perfect fit for your workflow. Explore now to unlock your AI edge in ad creation!
8 tools
xix.ai
chatbot
AI Knowledge Chatbot Tools for Internal Documentation
2026 Latest Best Top-rated AI Knowledge Chatbot Tools for Internal Documentation are here on XIX.AI! This curated list features powerful game-changing solutions that significantly boost productivity by helping teams quickly generate high-quality content, streamline documentation creation, and overcome common writing challenges. We conduct rigorous real-world tests and provide a weekly updated free vs paid comparison along with detailed rankings to help you find the must-try option that fits your needs best. Explore now to Discover your perfect tool!
12 tools
xix.ai
Text-to-speech
Best AI Text-to-Speech Tools: Create Natural Voiceovers for Videos
2026 Latest Best Top-Rated AI Text-to-Speech Tools Curated for Creating Natural Voiceovers in Videos. XIX.AI delivers powerful, game-changing solutions that boost writing efficiency and help you break through creation bottlenecks. We conduct real-world tests, offer free vs paid comparison, and update our rankings weekly. Must-try options are highlighted based on rigorous evaluations. Explore now to Discover your perfect tool for enhancing video quality.
9 tools
xix.ai
Finance
Best AI Fraud Detection Tools: Spot Suspicious Patterns Before Losses Grow
2026 Latest Best Top-rated AI Fraud Detection Tools curated by XIX.AI offer powerful game-changing solutions to spot suspicious patterns swiftly and prevent costly losses. Get a free vs paid comparison, real-world tests, and detailed rankings to help you choose the must-try option that boosts your security efficiency. Explore now to Unlock your AI edge.
10 tools
xix.ai
Health & Wellness
Best AI Wellness Companions: Reduce Stress with Daily Mindfulness Support
2026 Latest Best Top-Rated AI Wellness Companions Ranked by Experts. This curated list features powerful game-changing tools that offer daily mindfulness support to help users reduce stress, boost focus, and improve overall well-being through real-world tests. Get a free vs paid comparison to find your perfect match. Explore now at XIX.AI to unlock your AI edge.
9 tools
xix.ai
Comments (0)
0/500
Meta has started winding down its $2 billion acquisition of Manus, officially ending operational ties with this AI startup founded in China and ceasing all data sharing between the two companies. This action represents the most concrete progress to date in fulfilling a divestiture order issued by Beijing about two months ago due to concerns over national security.
According to Bloomberg, Meta has also cut Manus off from its internal systems, preventing its employees from using Manus’ tools for internal projects as the two entities move closer to a complete separation.
As reported by May, the co-founders of Manus have held preliminary talks about raising around $1 billion from external investors in an effort to reclaim the startup from Meta. Such a move could lead to the creation of a Chinese joint venture and eventually a listing on the Hong Kong stock market, which has seen an increase in AI company listings this year, including those from firms like MiniMax and Zhipu.
What was initially seen as a significant milestone for Chinese AI companies is now falling apart at an accelerated pace. This development highlights Beijing’s firm commitment to maintaining control over technologies considered strategically important, regardless of whether a company is incorporated overseas.
In addition to the forced divestiture, Chinese authorities have tightened travel restrictions on researchers and executives from private firms, requiring government approval before they can travel abroad. The country is also strengthening oversight of foreign investment, with reports suggesting that leading AI companies such as Moonshot AI, StepFun, and ByteDance will need government approval before accepting investment from the United States. These measures add another layer to Beijing’s broader efforts to regulate its AI sector.
Even as Meta works to sever ties with Manus, the agentic AI startup has continued to release new features, including integrations with Similarweb and Shopify.
Manus gained widespread attention after a viral demonstration of its agent technology, prompting the company to relocate its staff to Singapore in mid-2025 before Meta announced its $2 billion acquisition in December. Chinese regulators began to closely examine the deal earlier that year, raising concerns about potential violations of technology export controls and foreign investment regulations.
According to the WSJ, Manus’ investors, including the California-based venture firm Benchmark, have already received their funds from the acquisition. Asian investors such as Tencent, HSG, and ZhenFund have indicated their willingness to cooperate with the process of ending the acquisition.
Given Manus’ Chinese origins and its parent company, Butterfly Effect, it attracted scrutiny on both sides of the Pacific. U.S. Senator John Cornyn questioned whether American capital should be invested in a company with Chinese ties.
Meta and Manus did not respond to requests for comment sent outside regular business hours.
Hexagon: More than half of adults excited by robots
Robots are increasingly integrated into business operations. Credit: HumanoidHexagon data reveals 59% of adults are excited to work with robots, but a rising “Robot Generation” of children is far more eager for AI workplacesNew data from Hexagon sugg
Meta Expands Subscription Push With New AI-Focused Plans
Meta launched Meta One on Tuesday, a new subscription tier delivering expanded AI capabilities and premium perks across Facebook, Instagram, and WhatsApp. Subscribers gain access to a suite of AI tools for image and video creation, alongside in-app f
Rival AI agents Instinct and Meta’s Muse now support calling features
The market for text-based AI assistants is fiercely competitive, with Instinct, Wajo, Town, Ollie, and Meta’s newly launched Muse agent all vying for user attention and task management. Based in San Francisco, Instinct has emerged as a leading conten
2026 Latest Top-rated AI Customer Chatbots featured on this curated list are the best solutions for answering customer FAQs instantly and qualifying leads around the clock. XIX.AI has conducted rigorous real-world tests to deliver a detailed free vs paid comparison along with up-to-date rankings, helping you find a powerful game-changing tool that boosts productivity significantly. Explore now to Discover your perfect AI chatbot solution!
9 tools
xix.ai
2026 Latest Best AI Storyboard Generators for Ad Creative Teams! XIX.AI has curated a top-rated list of powerful, game-changing tools that help teams create stunning visual content faster through real-world tests and rigorous weekly updated rankings. Enjoy a free vs paid comparison to find the perfect fit for your workflow. Explore now to unlock your AI edge in ad creation!
8 tools
xix.ai
2026 Latest Best Top-rated AI Knowledge Chatbot Tools for Internal Documentation are here on XIX.AI! This curated list features powerful game-changing solutions that significantly boost productivity by helping teams quickly generate high-quality content, streamline documentation creation, and overcome common writing challenges. We conduct rigorous real-world tests and provide a weekly updated free vs paid comparison along with detailed rankings to help you find the must-try option that fits your needs best. Explore now to Discover your perfect tool!
12 tools
xix.ai
2026 Latest Best Top-Rated AI Text-to-Speech Tools Curated for Creating Natural Voiceovers in Videos. XIX.AI delivers powerful, game-changing solutions that boost writing efficiency and help you break through creation bottlenecks. We conduct real-world tests, offer free vs paid comparison, and update our rankings weekly. Must-try options are highlighted based on rigorous evaluations. Explore now to Discover your perfect tool for enhancing video quality.
9 tools
xix.ai
2026 Latest Best Top-rated AI Fraud Detection Tools curated by XIX.AI offer powerful game-changing solutions to spot suspicious patterns swiftly and prevent costly losses. Get a free vs paid comparison, real-world tests, and detailed rankings to help you choose the must-try option that boosts your security efficiency. Explore now to Unlock your AI edge.
10 tools
xix.ai
2026 Latest Best Top-Rated AI Wellness Companions Ranked by Experts. This curated list features powerful game-changing tools that offer daily mindfulness support to help users reduce stress, boost focus, and improve overall well-being through real-world tests. Get a free vs paid comparison to find your perfect match. Explore now at XIX.AI to unlock your AI edge.
9 tools
xix.ai
