Meta reportedly moves to unwind $2B Manus deal after Beijing's demand
Meta has begun dismantling its $2 billion acquisition of the Chinese-founded AI startup Manus, completing an operational separation and halting data sharing between the two companies. The move is the most concrete step yet toward complying with a divestiture order Beijing issued roughly two months earlier on national security grounds. Reports say Manus's co-founders have held preliminary talks to raise about $1 billion to reclaim the startup, potentially through a Chinese joint venture structure and an eventual Hong Kong listing.
Key Takeaways
- 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.
Meta has cut Manus off from its internal systems, Bloomberg reported, preventing employees from using Manus tools for internal projects as the two companies move toward a full separation.
- What was supposed to be a landmark exit for Chinese AI is quickly unraveling.
In addition to the forced divestiture, Chinese authorities have since expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad.
- Chinese regulators moved to scrutinize the transaction earlier this year, citing potential violations of technology export controls and foreign investment rules.
Manus 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 .
- Meta and Manus did not immediately respond to a request for comment outside regular business hours.
Kate Park Reporter, Asia Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia.
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Stats & Key Facts
- #Meta has begun dismantling its $2 billion acquisition of the Chinese-founded AI startup Manus, completing an operational separation and halting data sharing between the two companies.
- #Reports say Manus's co-founders have held preliminary talks to raise about $1 billion to reclaim the startup, potentially through a Chinese joint venture structure and an eventual Hong Kong listing.
- #Meta starts dismantling its $2 billion Manus acquisition after Beijing ordered the deal reversed.
- #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.
Meta starts dismantling its $2 billion Manus acquisition after Beijing ordered the deal reversed. 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 on national security grounds.
Meta has cut Manus off from its internal systems, Bloomberg reported, preventing employees from using Manus tools for internal projects as the two companies move toward a full separation. What 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.
In addition to the forced divestiture, Chinese authorities have since expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad. China is also tightening its grip on foreign capital , 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. Even as Meta moves to sever ties with Manus, the agentic AI startup has continued to ship new features, rolling out integrations with Similarweb and Shopify .
For more details please read the original article at TechCrunch AI.
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