Meta talks to sell Chinese AI start-up Manus after buying it for $2bn

In short: Meta is in talks to sell Manus, a Chinese AI start-up it bought for about $2bn, after being pushed to unwind the deal.

What happened

Meta, the company behind Facebook, is in talks to offload Manus, a Chinese “agentic AI” start-up. Agentic AI means software that can take steps to finish a task, like a helpful assistant that does more than answer questions.

The Financial Times reports Meta is a “forced seller” and is unwinding the deal at Beijing’s request. That matters because any new buyer would likely need Beijing’s approval, which narrows the pool of potential buyers. The safest option may be a group of mainly Chinese investors, including Tencent, which were among the investors Meta bought Manus from.

Meta paid about $2bn for Manus, which was around 20 times the company’s annual recurring revenue at the time. Annual recurring revenue is the predictable money a subscription business expects to bring in each year. The FT says Manus may now be valued at $2bn again, but that figure would be closer to four or five times its latest annual recurring revenue.

During its ownership, Meta integrated Manus into its ad management tools, then reportedly separated the technology out again. The FT also notes criticism that Manus is largely a “wrapper” on top of Anthropic’s Claude model (like a new remote control built to operate someone else’s TV).

Why it matters

This is a clear example of how politics can shape who can buy and sell AI companies, not just business fundamentals. For everyday users, it can affect which AI features show up in common tools, like ad platforms, and how quickly big tech companies change direction when the rules change.

Source: Financial Times