Meta dismantles $2B Manus acquisition after Beijing divestiture order

Meta is reversing its $2 billion purchase of Manus, an AI startup founded in China, by severing its internal systems and stopping data sharing. This decision follows a divestiture mandate from Beijing issued two months prior, citing national security concerns. The co-founders of Manus are in talks to secure $1 billion from external investors to regain control of the startup, which may result in a joint venture with China and a listing in Hong Kong. Additionally, Chinese authorities have tightened travel restrictions for AI professionals, necessitating government consent for overseas travel and U.S. investments. Despite the split, Manus is still launching new features and moved its staff to Singapore in mid-2025. The acquisition faced scrutiny from regulators and Senator John Cornyn. Neither Meta nor Manus provided comments.