{"slug": "meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand", "title": "Meta reportedly moves to unwind $2B Manus deal after Beijing’s demand", "summary": "Meta has begun dismantling its $2 billion acquisition of Chinese AI startup Manus, cutting off data sharing and access to internal systems, after Beijing ordered a divestiture on national security grounds. Manus co-founders are seeking $1 billion to reclaim the startup, potentially leading to a Chinese joint venture and Hong Kong listing. The move underscores China's determination to control strategically sensitive AI technology.", "body_md": "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](https://techcrunch.com/2026/04/27/china-vetoes-metas-2b-manus-deal-after-months-long-probe/) on national security grounds.\n\nMeta has cut Manus off from its internal systems, [Bloomberg reported,](https://www.bloomberg.com/news/articles/2026-06-11/meta-severs-manus-data-access-after-china-orders-buyout-unwound) preventing employees from using Manus tools for internal projects as the two companies move toward a full separation.\n\nMeanwhile, according to [May reports](https://www.bloomberg.com/news/articles/2026-05-21/manus-weighs-raising-1-billion-to-unwind-meta-takeover), the co-founders of Manus have held preliminary discussions about raising approximately $1 billion from outside investors to reclaim the startup from Meta, a move that could pave the way for a Chinese joint venture structure and an eventual listing in Hong Kong, a venue that has seen a surge in AI listings this year for Chinese AI startups like [MiniMax and Zhipu](https://asia.nikkei.com/business/technology/artificial-intelligence/minimax-and-zhipu-aim-to-further-tap-china-s-ai-fever-with-dual-listings).\n\nWhat was supposed to be a landmark exit for Chinese AI is quickly unraveling. The move underscores Beijing’s determination to retain control over strategically sensitive technology, regardless of a company’s offshore incorporation.\n\nIn addition to the forced divestiture, Chinese authorities have since [expanded travel restrictions](https://techcrunch.com/2026/05/27/china-is-increasingly-keeping-its-best-ai-talent-to-itself/) to researchers and executives at private firms, requiring government approval before heading abroad. China is [also tightening its grip on foreign capital](https://www.bloomberg.com/news/articles/2026-04-24/china-to-curb-us-investment-in-tech-companies-after-meta-deal), with reports indicating that top AI firms, including Moonshot AI, StepFun, and ByteDance, will need government sign-off before accepting U.S. investment, adding another layer to Beijing’s sweeping effort to control its AI sector.\n\nEven as Meta moves to sever ties with Manus, the agentic AI startup has continued to ship new features, rolling out integrations with [Similarweb](https://www.similarweb.com/blog/updates/announcements/similarweb-manus/) and [Shopify](https://manus.im/blog/manus-shopify-connector).\n\nManus drew widespread attention with a viral agent demo 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.\n\nManus 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](https://www.wsj.com/tech/ai/meta-is-preparing-to-have-to-undo-its-manus-acquisition-after-china-ban-a4ffbefb).\n\nManus’ Chinese origins with parent company Butterfly Effect drew scrutiny on both sides of the Pacific, with Senator [John Cornyn](https://techcrunch.com/2026/04/27/china-vetoes-metas-2b-manus-deal-after-months-long-probe/) [questioning](https://x.com/JohnCornyn/status/1920131642389065856?s=20) whether American capital should flow to a Chinese-linked firm.\n\nMeta and Manus did not immediately respond to a request for comment outside regular business hours.", "url": "https://wpnews.pro/news/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand", "canonical_source": "https://techcrunch.com/2026/06/13/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand/", "published_at": "2026-06-14 00:03:49+00:00", "updated_at": "2026-06-14 00:34:41.591293+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-policy", "ai-startups", "ai-agents"], "entities": ["Meta", "Manus", "Beijing", "Benchmark", "Tencent", "HSG", "ZhenFund", "John Cornyn"], "alternates": {"html": "https://wpnews.pro/news/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand", "markdown": "https://wpnews.pro/news/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand.md", "text": "https://wpnews.pro/news/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand.txt", "jsonld": "https://wpnews.pro/news/meta-reportedly-moves-to-unwind-2b-manus-deal-after-beijings-demand.jsonld"}}