Chinese regulators have ordered Meta* to reverse its acquisition of AI developer Manus, leaving the Singapore-based company preparing to operate independently again.
Meta’s $2 billion acquisition of AI developer Manus is being unwound, with the Singapore-based company saying it will soon return to operating independently after Chinese regulators blocked the deal.
Manus said the separation from Meta is required to meet regulatory obligations in certain jurisdictions. The company also advised some users to back up data generated from December 29, 2025, onwards—the date when Meta first announced the acquisition of Manus.
The decision to reverse the transaction was made in April by China’s National Development and Reform Commission, which required the parties to unwind the deal. The acquisition had drawn attention from regulators in both China and the US because of Manus’ Chinese origins and its focus on general-purpose AI agents.
Manus was established in China in 2022 before moving its operations to Singapore. The startup developed AI agents designed to carry out tasks with less direct human intervention, making it an attractive target as technology companies race to develop more capable AI systems.
Meta announced the acquisition last December, intending to incorporate Manus’ technology into products aimed at both consumers and businesses. The deal was part of Meta’s broader push to expand its AI capabilities and find new ways to generate revenue from the technology.
However, the transaction soon came under regulatory scrutiny in China over whether it complied with rules governing foreign investment. The order to unwind the deal has now left the companies with the difficult task of separating their operations and assets. Manus said the data-backup requirement for some users is part of that process and is necessary to comply with regulatory requirements in specific jurisdictions.
The unwinding highlights the growing complications around cross-border AI deals as China and the US tighten controls over strategically important technologies, including artificial intelligence, data and advanced technology. For Meta, the setback comes as it continues to invest heavily in AI and compete with Google, Anthropic and OpenAI. Manus is now preparing to operate independently again, underscoring how regulatory intervention can reshape major technology acquisitions even after they have been announced.
*banned and designated as extremist in Russia
Source: Firstpost
