China Intervenes in Meta’s Acquisition of AI Startup Manus Over Technology and Talent Flight Concerns

Manus, a general-purpose AI agent startup founded by a Chinese team and later based in Singapore, built its profile by automating multi-step work such as research and software development. Meta Platforms agreed on Dec. 29, 2025, to acquire the company for about $2 billion. The transaction became a test of Beijing’s ability to prevent advanced AI technology and talent developed by Chinese founders from moving under the control of a U.S. technology group.

China’s National Development and Reform Commission ordered the parties on April 27, 2026, to unwind the purchase. Meta subsequently separated operations and stopped sharing data with Manus. On Aug. 11, Manus said it would resume independent operations and directed users to back up post-acquisition data before a cleanup and system reset scheduled for Aug. 23-25. The founders are weighing a fundraising-backed buyout, while Tencent Holdings is reportedly discussing a controlling stake. Beijing is also poised to lift travel restrictions imposed in March on co-founders Xiao Hong and Ji Yichao.

Manus, founded by Chinese engineers and later relocated to Singapore, built a general-purpose AI agent capable of autonomously handling tasks including research and software development. Meta Platforms agreed in December 2025 to acquire the startup for more than $2 billion, seeking to accelerate its Meta AI strategy. The purchase became a test of how far Beijing would go to prevent Chinese-origin technology and talent from moving to a US company.

China’s National Development and Reform Commission ordered the transaction unwound on April 27, 2026. Meta halted data sharing and separated internal systems from Manus in early June. Reports on July 10 said Tencent was discussing a buyback with former investors HSG and ZhenFund for at least $2 billion. Such a deal could allow Meta to recover its purchase price while retaining know-how gained during months of integration, leaving the company with more financial and strategic value than the forced reversal initially suggested.

AI agent startup Manus previously attracted a proposed $2 billion acquisition by social media giant Meta because of its key technology, underscoring artificial intelligence’s strategic value amid geopolitical tensions. Beijing authorities subsequently blocked the deal, derailing the landmark acquisition and putting the startup’s ownership and future operations under intense scrutiny from the technology and financial sectors.

According to the latest reports in July 2026, Chinese technology giant Tencent is in talks to acquire the largest stake in Manus for $2 billion, which would make it the startup’s biggest shareholder. After the transaction, Manus would continue to operate independently in Singapore and plans to list in Hong Kong in the future. The move would expand Tencent’s AI footprint and give the startup a new path forward after the regulatory turmoil.