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Meta reportedly moves to unwind $2B Manus deal after Beijing’s demand

Meta is unwinding its $2 billion acquisition of Chinese AI startup Manus following a divestiture order from Beijing, citing national security concerns. The companies have already begun operational separation, including cutting off internal system access and halting data sharing. Manus's founders are reportedly seeking $1 billion in outside funding to potentially establish a Chinese joint venture and pursue a Hong Kong listing, reflecting China's tightening control over its AI sector and foreign investments.

Background

The acquisition of Manus by Meta was initially seen as a landmark deal for Chinese AI startups, but increasing geopolitical tensions and national security concerns have led to heightened scrutiny of cross-border tech investments. China has been implementing stricter controls over its domestic AI sector and foreign investments in recent years.

Source
TechCrunch
Published
Jun 14, 2026 at 08:03 AM
Score
7.0 / 10