Chinese backers plan to buy AI firm Manus back from Meta

The original Chinese backers of AI startup Manus are planning to buy the company back from Meta Platforms for $2 billion—the exact price the Facebook parent company paid to acquire it—following regulatory pressure from Beijing.

According to a report by The Information, early investors including HSG, ZhenFund, and tech giant Tencent are participating in the buyback. HSG and ZhenFund are reportedly preparing to deploy fresh capital to fully absorb Meta's stake in the company, News.Az reports, citing Reuters.

The unwinding of the deal comes just months after Chinese regulators ordered Meta to divest from Manus. The mandate is part of Beijing's intensifying scrutiny over U.S. technology investments in Chinese-linked startups, particularly those developing cutting-edge artificial intelligence.

Meta originally acquired the Singapore-based Manus in December to supercharge its own development of "agentic AI"—AI systems capable of autonomously executing complex tasks with minimal human intervention. Following Beijing's regulatory intervention in April, Meta has already enacted a strict internal firewall, separating its operations and halting all data sharing with Manus.

Ironically, the forced divestment comes amid a massive growth spurt for the AI startup. Since its brief stint under Meta, Manus has seen its annualized revenue run rate skyrocket to between $400 million and $500 million in recent weeks, up from just $100 million at the time of the acquisition.

To navigate future regulatory hurdles, Manus is reportedly considering restructuring its business into a joint venture officially incorporated in China, a move that would clear the path for a potential public listing on the Hong Kong stock exchange. Notably, early U.S. investor Benchmark will not be participating in the buyback process.

News.Az 

By Aysel Mammadzada