Meta begins unwinding $2B Manus acquisition after Beijing divestiture order
Original: Meta reportedly moves to unwind $2B Manus deal after Beijing’s demand
Why This Matters
Highlights Beijing's tightening control over AI sector and cross-border tech deals
Meta has started dismantling its $2 billion acquisition of Chinese AI startup Manus, cutting off internal system access and halting data sharing after Beijing issued a divestiture order two months ago on national security grounds.
Meta has begun operationally separating from Manus, preventing employees from using Manus tools for internal projects as the companies move toward full separation. Manus co-founders are reportedly in preliminary discussions to raise $1 billion from outside investors to reclaim the startup, potentially enabling a Chinese joint venture structure and Hong Kong listing. Chinese authorities have expanded travel restrictions on AI researchers and executives, requiring government approval before going abroad. Reports indicate top AI firms including Moonshot AI, StepFun, and ByteDance now need government sign-off before accepting U.S. investment. Manus, which relocated staff to Singapore in mid-2025 before Meta's December acquisition announcement, drew scrutiny for its Chinese origins through parent company Butterfly Effect. The startup continues shipping new features despite the unwinding process.