Manus back in action after Meta’s $2 bn deal unwinds

Meta has decided to unwind its $2 billion acquisition of AI startup Manus, following orders from Chinese regulators, according to AFP. Manus, a Singapore-based AI company, had announced that users would need to back up data generated from December 29, 2025 onwards, as part of the separation process. The startup, founded in China in 2022 before relocating its headquarters to Singapore, was under scrutiny from both Chinese authorities and the US for compliance with foreign investment and technology transfer rules.

In April, China's National Development and Reform Commission (NDRC) ordered the parties to terminate the deal. This development comes amid increased competition between China and the US for AI talent, computing hardware, and data as the global race to develop advanced AI systems heats up. Meta had intended to incorporate Manus' technology into its consumer and enterprise products to intensify the competition with rival AI companies like OpenAI, Google, and Anthropic.