Meta has erected a data firewall between itself and Manus, the Chinese-founded agentic AI platform it acquired for $2 billion in December 2025, and instructed staff to sunset the service. The split follows China's National Development and Reform Commission ordering the deal unwound in April 2026 after a regulatory probe concluded it violated foreign investment and technology export rules. Manus's three founders are now seeking to raise $1 billion from external investors to fund a buyback at the original $2 billion valuation, with a potential restructuring as a Chinese joint venture ahead of a Hong Kong IPO. The situation is complicated by the fact that investors including Tencent and ZhenFund have already received acquisition proceeds. Despite the operational split, some Manus integrations with Meta services remain active. The episode highlights China's expanded regulatory toolkit for blocking cross-border AI deals involving technology or talent of Chinese origin, regardless of where a company is incorporated.
