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China Orders Meta to Unwind $2 Billion Purchase of AI Startup Manus

The decision signals Beijing’s push to keep sensitive AI assets from U.S. buyers.

Overview

  • China’s state planner, the NDRC, issued a one-line order Monday blocking foreign investment in Manus and requiring all parties to withdraw from the deal.
  • Manus builds general-purpose AI agents that can carry out multi-step computer tasks with little input, a capability Meta sought to fold into its products after announcing the acquisition in December.
  • Unwinding now looks messy because Manus staff have already joined Meta teams, the startup’s site says it is part of Meta, and investors appear to have been paid.
  • The startup was founded in China, moved its operations to Singapore in 2025 after cutting China-based roles, and its co-founders Xiao Hong and Ji Yichao were reportedly barred from leaving China in March during the review.
  • Regulators have also warned leading AI firms to avoid U.S. capital unless approved, a tightening that could chill cross-border AI deals as President Donald Trump prepares to meet Xi Jinping in Beijing in mid-May.