Meta starts unwinding Singapore-based Manus deal by splitting operations, data
Facebook’s owner has effectively put up a firewall between itself and the AI firm, which moved here in 2025
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[BEIJING] Meta Platforms has completed an operational split from Manus and halted data sharing between the two companies, taking a pivotal step towards unwinding a US$2 billion acquisition opposed by Beijing.
The owner of Facebook and Instagram has effectively erected a firewall between itself and the Chinese-founded agentic AI service, people familiar with the matter said.
Meta has barred Manus and its staff from accessing the US company’s internal data systems since the start of June, the people said.
Meta employees, in turn, can no longer use Manus tools for internal projects, the people added, asking to remain anonymous to discuss private decisions.
The ringfencing comes as Manus’ founders explore options to fulfil Beijing’s demand to undo the deal, including by raising about US$1 billion to fund a buyback.
Meta is “sunsetting” Manus, according to an internal memo viewed by Bloomberg News.
Staff were told to migrate existing Manus projects onto Meta’s systems and not to start new work on the AI platform, the memo showed. Together, the actions taken to separate the two operations mark another step towards eventually hiving off Manus, the people said.
Once celebrated as a blueprint for Chinese AI startups keen to set foot on a global stage, Meta’s landmark acquisition of Manus quickly drew criticism for handing over key technology to a geopolitical rival, triggering a months-long probe involving tech export controls.
Chinese regulators in April demanded that the deal be unwound, triggering the intricate process of dismantling a completed transaction.
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Manus, once hailed as a breakthrough that would challenge Silicon Valley’s dominance, is turning into a cautionary tale for Chinese entrepreneurs.
The founders got their start in China but relocated their headquarters and key staff to Singapore in 2025. When the deal was announced in December 2025, it was not clear whether Beijing would exert authority over a transaction that technically took place beyond its borders.
Manus’s three founders – Xiao Hong, Ji Yichao, and Zhang Tao – have begun discussions about raising money to fund a buyback at a valuation that would at least match the US$2 billion Meta paid, Bloomberg News reported last month.
It is unclear if discussions around a deal have advanced significantly. Manus staff have moved into Meta offices in Singapore, while investors including Tencent, ZhenFund and HSG have received their proceeds from Meta’s acquisition, people familiar with the matter said previously.
Since Beijing’s April decision, Manus has continued to add new features to its service.
It has integrated data from SimilarWeb and added functionality from e-commerce software maker Shopify, announcements on Manus’ website showed.
Its users are still given the option to access Meta’s Ads Manager service as of this week, and connect with Instagram along with other services such as Gmail and coding platform GitHub. BLOOMBERG
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