Manus, the Chinese-founded AI startup, is at the center of a high-stakes restructuring after Beijing ordered the unwinding of its $2 billion-plus acquisition by Meta Platforms. The co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — are exploring a plan to raise approximately $1 billion from external investors to regain control of the company, according to Bloomberg. The funds would be used to buy back the business at a valuation at least equal to what Meta originally paid, with the founders potentially contributing personal capital to cover any shortfall.
The regulatory intervention, driven by national security concerns over sensitive AI technology and talent transfers, is one of the most prominent examples of China reversing a completed foreign acquisition in the sector. Beijing had barred two of the three co-founders from leaving the country during the review and last month formally ordered Meta to unwind the deal. The startup, which builds general-purpose AI agents that act as digital employees, was acquired by Meta in late December to strengthen its AI capabilities across platforms.
As part of the buyback plan, Manus could be restructured into a Chinese joint venture and eventually pursue a Hong Kong initial public offering. This path would allow the company to remain operational while aligning with Chinese regulatory expectations. Meta shares edged modestly higher following the reports, as investors viewed the development as manageable for the social media giant's broader AI ambitions.
The situation underscores growing geopolitical tensions and heightened scrutiny over cross-border technology investments, particularly in artificial intelligence. No timeline for the fundraising or potential IPO has been confirmed, and discussions remain at an early stage.
