Meta* Cuts Ties with Chinese Startup Manus Following Beijing’s Order

Photo: Tom's Hardware
Quick answer
Meta complied with China’s demand to terminate its 143,5 млрд ₽ deal with Chinese AI startup Manus by severing system ties.
Meta* has completed the process of separating from Chinese startup Manus, acquired for 143,5 млрд ₽ last December. According to Bloomberg, Manus employees lost access to Meta’s internal systems at the beginning of this month, and the use of their tools for internal tasks within the company has been prohibited. An internal memo confirms that the Manus platform is being decommissioned, with all ongoing projects to be migrated to Meta’s own infrastructure.
The decision follows an April order from China’s National Development and Reform Commission (NDRC), which demanded the annulment of the deal as part of a foreign investment security review. This marks the first case of Beijing forcibly dissolving a completed cross-border deal in the artificial intelligence sector, despite Manus relocating its headquarters and key team from Beijing to Singapore in mid-2025.
The startup’s founders—Xiao Hong, Ji Yichao, and Zhang Tao—are negotiating to raise approximately 71,8 млрд ₽ to buy back the company from Meta*. However, experts doubt the success of this initiative, as Manus’s core technologies may have already been integrated into Meta’s products. Meanwhile, Chinese regulators are demanding the return of the startup’s assets to their pre-deal state, which is technically challenging for AI models and know-how.
Beijing’s decision reinforces the trend of tightening control over technological assets. Previously, Chinese authorities blocked shipments of Nvidia H200 chips despite U.S. approval, while local companies like DeepSeek are actively developing solutions based on domestic hardware. In Chinese state media, Manus was portrayed as a symbol of national AI ambitions, making its sale to Meta* a high-profile case for regulators.
* Facebook, Instagram, WhatsApp, and other Meta services are owned by Meta Platforms Inc., whose activities have been recognized as extremist and banned in the Russian Federation.
Common questions
- Why did China demand Meta terminate its deal with Manus?
- Chinese authorities viewed the sale of Manus to a U.S. company as a threat to national security in the AI sector. This is the first instance of Beijing annulling a completed cross-border deal in this industry.
- What are the consequences for Manus after the breakup with Meta?
- The startup has lost access to Meta’s infrastructure, and its founders are seeking 71,8 млрд ₽ to buy back the company. However, key technologies may have already been integrated into Meta’s products.
- How will China’s decision impact the AI market?
- The ruling strengthens Beijing’s control over technological assets and may restrict international AI deals. Similar measures have already been applied to semiconductor companies.
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