Meta reportedly begins dismantling $2bn Manus deal after Beijing intervention
TLE Desk: Meta has reportedly begun unwinding its more than $2 billion acquisition of artificial intelligence startup Manus after Chinese authorities ordered the deal to be reversed on national security grounds, according to media reports.
The move follows a decision by China’s National Development and Reform Commission (NDRC) requiring the US technology giant to withdraw from its acquisition of Manus, an AI startup founded by Chinese entrepreneurs that later relocated its operations to Singapore.
Beijing said the transaction raised concerns about the transfer of Chinese AI talent, intellectual property and strategic technologies to the United States, reflecting growing scrutiny of foreign involvement in China’s advanced technology sector.
Meta completed the acquisition in December 2025 as part of its effort to strengthen its position in the rapidly evolving AI industry. Manus had gained attention for developing AI agent technology capable of carrying out complex tasks with limited human supervision.
Despite Manus relocating to Singapore and shutting down its mainland China operations, Chinese regulators asserted jurisdiction over the deal, arguing that the company’s technology, founders and research roots remained closely linked to China.
The order has created uncertainty over how the transaction will be reversed, particularly as Manus employees and projects have already been integrated into Meta’s Singapore operations. Industry analysts say the case could become a landmark test of Beijing’s ability to regulate cross-border technology deals involving Chinese-origin companies.
Meta has maintained that the acquisition complied with applicable laws and has indicated it expects a resolution to the regulatory dispute.
The dispute highlights intensifying competition between the United States and China over artificial intelligence, which both countries increasingly regard as a strategic technology with national security implications.
