Meta Divests Chinese AI Startup Manus Following Government Order
Meta has reportedly severed ties with Chinese AI startup Manus, acquired for $2 billion in December. Citing national security concerns, Beijing ordered the deal unwound, a move Meta is now enacting by locking Manus employees out of internal systems and sunsetting the platform. The startup's founders are reportedly seeking funds to repurchase the company.
Key points
- Meta has begun separating its operations from Chinese AI startup Manus, following a government order to reverse the $2 billion acquisition.
- Manus employees have been denied access to Meta's internal data systems, and the platform is reportedly being "sunsetting".
- Beijing's National Development and Reform Commission ordered the divestment in April, citing foreign investment security concerns.
- This marks the first time Beijing has forced the reversal of a completed cross-border AI acquisition.
- Manus's founders are reportedly attempting to raise funds to buy back the company.
Meta has reportedly completed the separation from Manus, a Chinese AI startup it acquired for approximately $2 billion in December. The move comes after Beijing's National Development and Reform Commission (NDRC) ordered the deal's reversal in April due to foreign investment security concerns. Sources indicate Manus employees have been locked out of Meta's internal data systems since early this month, and the platform itself is being "sunsetting."
Meta staff are now prohibited from utilizing Manus tools for internal projects, with existing work slated for migration to Meta's own infrastructure. This action signifies Meta's compliance with the NDRC's directive, which was issued under China's foreign investment security review mechanism. The commission's assertion of jurisdiction occurred despite Manus relocating its headquarters and core team to Singapore in mid-2025.
The regulatory scrutiny intensified in March when Chinese authorities reportedly barred Manus co-founders Xiao Hong and Ji Yichao from leaving mainland China. The order is said to mandate the restoration of Manus's Chinese assets to their condition prior to the acquisition within weeks. Meanwhile, the startup's founders are reportedly exploring options to raise around $1 billion to repurchase their company.
Sources
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