Meta faces $2 billion buyback as China orders reversal of Manus AI deal

# Manus Investors Seek to Reclaim AI Startup Following Meta Acquisition Reversal

A group of early investors in artificial intelligence startup Manus is reportedly working to buy back the company after regulatory pressure forced Meta to reverse its acquisition. The proposed deal would value Manus at approximately $2 billion—the same valuation at which Meta originally acquired the AI firm.

The reported buyback highlights the growing influence of government oversight in the global artificial intelligence industry, particularly as advanced AI technologies become increasingly tied to national security and economic strategy. Regulators have been placing greater scrutiny on cross-border ownership of companies developing next-generation AI systems.

Meta acquired Manus in late 2025 to strengthen its artificial intelligence portfolio and expand its capabilities in autonomous AI agents and advanced machine learning technologies. The acquisition was viewed as a strategic move to enhance Meta's long-term AI ambitions and compete more aggressively in the rapidly evolving sector.

However, Chinese authorities later directed the company to unwind the transaction, raising concerns over foreign ownership of strategically important AI technologies. The decision reflects Beijing's broader effort to retain domestic control over critical innovations in artificial intelligence.

According to reports, several of Manus' original investors—including HSG, ZhenFund, and Tencent—are leading discussions to regain ownership of the company. Some investors are also expected to provide additional capital to complete the transaction, while others are reportedly choosing not to participate.

As part of the regulatory process, Meta has already begun separating its operations from Manus, including ending certain collaborative activities between the two companies. Industry reports suggest the startup could eventually be restructured under a China-based joint venture, potentially positioning it for future expansion through public markets.

Despite the ownership uncertainty, Manus has continued to deliver strong business growth. The company has significantly increased its annualized revenue, demonstrating continued demand for its AI technologies and reinforcing investor confidence in its long-term potential.

The situation illustrates how artificial intelligence has become more than a commercial opportunity, evolving into a strategic industry shaped by geopolitics, regulation, and national interests. Companies pursuing international AI acquisitions are likely to face increasing regulatory challenges as governments seek to safeguard technologies considered essential to future economic and technological leadership.

If the buyback proceeds, Manus would remain one of the most closely watched AI startups, serving as an example of how regulatory decisions can reshape major technology deals in today's rapidly changing artificial intelligence landscape.