Facebook parent Meta to unwind US$2 billion Manus AI deal after Beijing block

Meta Platforms, the parent company of Facebook, is planning to fully unwind its acquisition of Chinese AI platform Manus after Beijing blocked the deal on national security grounds, marking another major decoupling between the US and China in the AI sector. Manus informed users on Tuesday that it would delete data generated by "certain users" since December 29, the date of Meta's acquisition, as part of its transition to independent operations.

Users were given until August 23 to back up their data, while unaffected users can continue using the service without interruption. The data deletion is necessary to comply with regulatory requirements in some parts of the world, though specific requirements were not disclosed. Launched in March 2025, Manus is an AI agent platform that autonomously performs tasks like web browsing and report writing.

The Beijing-based Butterfly Effect, which created Manus, was founded in 2022 and rebranded as a Singapore company last summer. This move allowed the startup to bypass US restrictions on capital and technology exports to China, providing access to US AI models and advanced semiconductor chips. The deal, reported at $2 billion, was Meta's first significant AI acquisition after years of restrictions on such transactions.

However, Beijing launched an investigation into the deal, leading to its full unwinding in April due to national security concerns. The outcome of this transaction underscores the ongoing tensions between the two tech giants.