Meta Unwinds $2 Billion Manus Deal Amid Beijing's Divestiture Order
Meta has begun dismantling its $2 billion acquisition of Manus, a Chinese-founded AI startup, following a divestiture order from Beijing due to national security concerns.
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 development marks the most concrete step yet toward complying with the divestiture order issued by Beijing roughly two months ago.
The move underscores Beijing's determination to retain control over strategically sensitive technology, regardless of a company's offshore incorporation.
- Chinese authorities have since 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, including Moonshot AI, StepFun, and ByteDance, will need government sign-off before accepting U.S. investment.
Manus has continued to ship new features, rolling out integrations with Similarweb and Shopify. The agentic AI startup had drawn widespread attention with a viral agent demo and relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition by Meta in December.
Chinese regulators moved to scrutinize the transaction earlier this year, citing potential violations of technology export controls and foreign investment rules.
Manus investors, including California-based venture firm Benchmark, have already received their proceeds from the acquisition, while Asian backers, including Tencent, HSG, and ZhenFund, have indicated they will cooperate with the unwinding process, according to the WSJ.