Meta reportedly starts undoing its $2B Manus acquisition

In short: Meta is reportedly beginning to unwind its $2 billion purchase of the AI startup Manus after Chinese regulators ordered the deal reversed.

What happened

Meta has started separating its operations from Manus, a Chinese-founded AI startup, according to reporting cited by TechCrunch. The company has completed an “operational separation,” meaning the two businesses are no longer running as one.

Meta has also reportedly stopped data sharing between the companies. Think of it like cutting off shared office systems and shared files, so the two teams cannot keep working from the same digital playbook.

This move follows a divestiture order from Beijing issued about two months ago on national security grounds. A divestiture order is a government demand to sell or give up control of a company or asset.

Bloomberg also reported that Meta cut Manus off from Meta’s internal systems. That includes preventing Meta employees from using Manus tools for internal projects, as both sides move toward a full split.

Reports in May said Manus’ co-founders discussed raising about $1 billion from outside investors to reclaim the startup from Meta. That could lead to a structure involving a Chinese joint venture and possibly a future stock market listing in Hong Kong.

Why it matters

This is a clear example of governments shaping what big tech companies can buy, especially in AI. For everyday people, it can affect which AI features get built, where they are offered, and how companies handle data across borders.

Source: TechCrunch AI