Meta has implemented a data firewall isolating Manus, the Chinese-founded AI company it acquired for $2 billion in late 2025, as Beijing mandates unwinding the deal. Manus staff lost access to Meta systems in June, and Meta employees must migrate away from Manus tools.
- China's NDRC ordered unwind of $2B Meta-Manus acquisition
- Manus cut off Meta internal data and tools from June 2026
- Founders plan $1B buyback to reestablish Manus as joint venture
What happened
Meta has cut off Manus, the Chinese-founded AI startup acquired in December 2025 for $2 billion, from accessing its internal data systems starting June 2026. Meta employees are also instructed to migrate existing Manus projects off Manus platforms and not initiate new ones, as an internal memo confirmed the platform is being sunset.
This operational split follows an order from China’s National Development and Reform Commission (NDRC) in April 2026. The NDRC concluded the acquisition violated foreign investment and technology export rules, despite Manus relocating its headquarters to Singapore. Manus co-founders faced government scrutiny, and travel restrictions were imposed during the probe.
Why it matters
The dismantling of the Meta-Manus deal signals a tightening of China's control over outbound investments in AI technology, enforcing stricter restrictions even on companies relocated offshore. This reflects broader efforts by Beijing to maintain oversight over sensitive tech assets and talent.
Meta’s loss of Manus as a partner disrupts its agentic AI ambitions just months after the headline-grabbing acquisition and viral demo. The situation also complicates investor returns and challenges the startup’s ability to operate independently without Meta's infrastructure, highlighting the risks foreign firms face operating in the Chinese AI ecosystem.
What to watch next
The three Manus founders are actively seeking to raise approximately $1 billion to buy back the startup at a valuation matching Meta’s purchase price. Their aim is to restructure Manus as a Chinese joint venture backed by local investors, potentially preparing for a Hong Kong IPO. The progress of these fundraising talks is still unclear.
Observers should monitor how Manus continues to develop amidst separation from Meta’s core systems, as some integrations remain active. It is uncertain if Manus can sustain growth independently, navigate regulatory demands, and retain market traction without access to Meta’s extensive resources.