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

Meta Platforms, the parent company of Facebook, is set to fully unwind its acquisition of Chinese-founded artificial intelligence platform Manus, nearly four months after Beijing blocked the deal due to national security concerns. Manus, launched in March 2025, is an AI agent platform that autonomously carries out tasks on behalf of users, such as browsing the web and composing reports.

The data deletion, initiated on December 29, is required to comply with regulatory requirements in specific regions of the world, though the exact criteria were not disclosed. The AI platform, previously operated by Butterfly Effect, had offices in Beijing and Wuhan before it rebranded as Manus and moved to Singapore. The acquisition by Meta for a reported US$2 billion in December marked a rare instance of collaboration between the US and China in the AI sector.

However, the deal faced scrutiny from Beijing, which launched a probe into potential violations of Chinese regulations. This investigation culminated in an order for Meta and Manus to completely dissolve the transaction in April, citing national security concerns. Manus has not provided details about its future operations following the unwinding.

Chinese tech giant Tencent was reportedly in talks to become Manus' largest shareholder, with other former Chinese investors also participating in the discussions.