Meta Unwinds $2B Manus Deal Amid Beijing's National Security Concerns

The Unwinding of Meta's Manus Deal

Meta has begun dismantling its $2 billion acquisition of Manus, completing an operational separation from the Chinese-founded AI startup and halting data sharing between the two companies. This is the most concrete step yet toward complying with a divestiture order Beijing issued roughly two months ago on national security grounds.

Details of the Separation

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. The co-founders of Manus have held preliminary discussions about raising approximately $1 billion from outside investors to reclaim the startup from Meta.

Financial Implications

• Meta's acquisition of Manus was valued at $2 billion.
• Manus investors, including California-based venture firm Benchmark, have already received their proceeds from the acquisition.
• Asian backers, including Tencent, HSG, and ZhenFund, have indicated they will cooperate with the unwinding process.

Broader Implications for China's AI Sector

The move underscores Beijing's determination to retain control over strategically sensitive technology, regardless of a company's offshore incorporation. Chinese authorities have expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad. China is also tightening its grip on foreign capital, with reports indicating that top AI firms will need government sign-off before accepting U.S. investment.

The Future of Manus and Chinese AI

Even as Meta moves to sever ties with Manus, the agentic AI startup has continued to ship new features, rolling out integrations with Similarweb and Shopify. The development may pave the way for a Chinese joint venture structure and an eventual listing in Hong Kong for Manus.