Meta has begun dismantling its $2 billion acquisition of Manus, finishing an operational separation from the Chinese language-founded AI startup and halting information sharing between the 2 firms. That is essentially the most concrete step but towards complying with a divestiture order Beijing issued roughly two months ago on nationwide safety grounds.
Meta has reduce Manus off from its inside methods, Bloomberg reported, stopping workers from utilizing Manus instruments for inside initiatives as the 2 firms transfer towards a full separation.
In the meantime, in line with May reports, the co-founders of Manus have held preliminary discussions about elevating roughly $1 billion from outdoors buyers to reclaim the startup from Meta, a transfer that would pave the best way for a Chinese language three way partnership construction and an eventual itemizing in Hong Kong, a venue that has seen a surge in AI listings this 12 months for Chinese language AI startups like MiniMax and Zhiphu.
What was imagined to be a landmark exit for Chinese language AI is rapidly unraveling. The transfer underscores Beijing’s willpower to retain management over strategically delicate expertise, no matter an organization’s offshore incorporation.
Along with the compelled divestiture, Chinese language authorities have since expanded travel restrictions to researchers and executives at personal companies, requiring authorities approval earlier than heading overseas. China is also tightening its grip on foreign capital, with studies indicating that prime AI companies, together with Moonshot AI, StepFun, and ByteDance, will want authorities sign-off earlier than accepting U.S. funding, including one other layer to Beijing’s sweeping effort to manage its AI sector.
Whilst Meta strikes to sever ties with Manus, the agentic AI startup has continued to ship new options, rolling out integrations with Similarweb and Shopify.
Manus drew widespread consideration with a viral agent demo relocated its workers to Singapore in mid-2025 earlier than asserting a $2 billion acquisition by Meta in December. Chinese language regulators moved to scrutinize the transaction earlier this 12 months, citing potential violations of expertise export controls and international funding guidelines.
Manus buyers, together with California-based enterprise agency Benchmark, have already acquired their proceeds from the acquisition, whereas Asian backers, together with Tencent, HSG, and ZhenFund, have indicated they are going to cooperate with the unwinding course of, in line with the WSJ.
Manus’ Chinese language origins with dad or mum firm Butterfly Impact drew scrutiny on each side of the Pacific, with Senator John Cornyn questioning whether or not American capital ought to move to a Chinese language-linked agency.
Meta and Manus didn’t instantly reply to a request for remark outdoors common enterprise hours.
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