Meta Platforms has completed an operational split from agentic AI startup Manus and halted data sharing between the two companies, taking a pivotal step toward unwinding a $2 billion acquisition opposed by Beijing, Bloomberg reported on June 11.
What Just Changed
According to people familiar with the matter, Meta has barred Manus and its staff from accessing the US company's internal data systems since the start of June, and Meta employees can no longer use Manus tools for internal projects. An internal memo viewed by Bloomberg confirmed Meta is "sunsetting" the platform, telling staff to migrate existing Manus projects onto Meta's systems and not to start new work on the service.
How It Got Here
Meta acquired Manus in December 2025 for roughly $2 billion in what was once framed as a blueprint for Chinese AI startups going global, with founders Xiao Hong, Ji Yichao and Zhang Tao having already relocated headquarters and key staff from China to Singapore in 2025. The deal quickly drew criticism for handing critical agentic technology to a US tech rival, triggering a months-long Chinese probe involving tech export controls. In April 2026, Chinese regulators demanded the deal be unwound.
The Buyback Push
Manus's founders have begun discussions about raising roughly $1 billion to fund a buyback at a valuation that would at least match the $2 billion Meta paid. Manus staff have already moved into Meta offices in Singapore, while previous investors including Tencent Holdings, ZhenFund and HSG received their proceeds from the original acquisition. Despite the ringfencing, Manus has continued to ship product, integrating data from Similarweb and Shopify and still letting users connect to Meta's Ads Manager, Instagram, Gmail and GitHub.
Why It Matters
The Manus saga reads as a cautionary tale for Chinese AI startups eyeing global exits, and a fresh data point on the willingness of regulators to claw back completed cross-border deals. It lands as Anthropic files confidentially for a US IPO, OpenAI follows with its own confidential S-1 and EngineAI files in Hong Kong, underscoring a widening US-China split in how next-generation AI platforms can scale across borders.
What Comes Next
It remains unclear whether the founders' buyback discussions have advanced into firm financing commitments. Until they do, Manus will continue operating under a Meta-imposed firewall while its underlying technology and customer relationships effectively decouple from Menlo Park's stack.
Reporting based on coverage from Bloomberg, CNBC and Yahoo Finance.