3 weeks ago
Manus resumes independent operations as Meta deal unwinds
Manus is a company that makes AI technology.
A very big company called Meta bought Manus.
But China's government said no to the deal.
It worried that a US company would take China's AI ideas and smart workers.
So Meta has to give the deal back, and Manus will be an independent company again.
Manus will delete some of its users' data to follow the rules.
Users who are affected will get a message through the app and email, and can save their data first.
Manus used to work in China, but it moved its operations to Singapore.
Another big company, Tencent, might become the biggest owner of Manus.
This story shows that countries are deciding who can own AI technology.
AI startup Manus announced on Tuesday it will resume operating as an independent company as part of its separation from Meta.
User data generated on or after December 29, 2025 will be deleted later this month, with affected users notified via the Manus app and email.
China's National Development and Reform Commission (NDRC) ordered Meta in April to unwind its $2 billion-plus acquisition of Manus.
After a $75 million funding round led by US venture firm Benchmark in May 2025, Manus shut its China offices and moved its operations to Singapore.
Chinese internet and gaming company Tencent has been in talks to become Manus's largest shareholder, according to Reuters.
- Who
- Manus, an AI startup; Meta, the US tech giant; China's National Development and Reform Commission (NDRC); and Tencent, which has held talks to become Manus's largest shareholder.
- What
- Manus is resuming operations as an independent company, with certain user data set to be deleted, as its $2 billion-plus acquisition by Meta is unwound.
- Where
- China, where the NDRC ordered the deal unwound; Manus moved its operations to Singapore.
- When
- Announced on Tuesday; data generated on or after December 29, 2025 will be deleted later this month, following the NDRC's April order.
- Why
- China's NDRC ordered the unwinding over national security concerns about US investment in Chinese startups developing frontier technologies.
Chinese regulators
Meta and Manus
Unwinding the $2 billion-plus acquisition
Chinese regulators
The NDRC's foreign investment security review said it would prohibit foreign investment in Manus and requires the parties to withdraw the transaction, reflecting Beijing's determination to stop US firms acquiring Chinese AI talent and intellectual property.
Meta and Manus
Meta said the transaction complied fully with applicable law and that it anticipated an appropriate resolution to the inquiry.
Jurisdiction over cross-border AI deals
Chinese regulators
Analysts and lawyers say the rare unwinding of a completed deal shows Beijing is establishing jurisdiction over cross-border transactions involving Chinese assets, shareholders or technology under its national security review regime.
Meta and Manus
Manus's restructuring — shutting China offices, laying off dozens of employees, and re-incorporating parent Butterfly Effect in Singapore — was described as a way to operate within US investment restrictions and Chinese rules on transferring IP and capital overseas.
User data handling during separation
Chinese regulators
Deleting data generated by certain users on or after December 29, 2025 is required to comply with regulatory requirements in specific jurisdictions as part of the separation from Meta.
Meta and Manus
Manus says affected users will be notified through the app and by email and will be able to back up their data before deletion, framing the process as transparent and user-protective.
Key facts
- Company
- Manus (AI startup)
- Deal
- Meta's $2 billion-plus acquisition of Manus, ordered unwound by China's NDRC
- Regulator
- China's National Development and Reform Commission (NDRC)
- Data deletion
- Data generated on/after December 29, 2025, to be deleted later this month
- User notice
- Manus app and email; users can back up data
- Fundraising
- $75 million round led by US venture firm Benchmark in May 2025
- Restructuring
- China offices shut in July; parent Butterfly Effect re-incorporated in Singapore
- Potential investor
- Tencent in talks to become largest shareholder
Quotes
Manus
AI startup
“As part of our transition back to independent operations and to comply with regulatory requirements in specific jurisdictions, data generated by certain users on/after December 29, 2025 will be deleted later this month.”
CNBC TV 18
“"This is part of our separation from Meta."”
CNBC TV 18
indianexpress.com
Sources
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