Meta Divests Chinese AI Firm Amid Security Fears

Meta has initiated the operational separation from Manus, its $2 billion AI startup acquisition, in direct response to a divestiture order issued by Beijing approximately two months ago on national security grounds. This action involves cutting off data sharing and access to Meta's internal systems for Manus.

Reports from May indicate that Manus's co-founders are in preliminary talks to raise around $1 billion from external investors for a potential buyback. Such a move could lead to the startup adopting a Chinese joint venture structure and eventually listing on the Hong Kong Stock Exchange.

This unraveling of a significant AI exit highlights Beijing's commitment to controlling strategically important technologies, regardless of a company's registration. Furthermore, Chinese authorities have intensified scrutiny by expanding travel restrictions for researchers and executives and tightening controls on foreign capital for AI firms.

Despite the ongoing separation, Manus continues to release new features and integrations. The startup had previously relocated its staff to Singapore in mid-2025 before its acquisition by Meta in December. Chinese regulators began examining the deal earlier this year due to concerns over technology export controls and foreign investment rules.