Meta Halts Data Exchange with Chinese AI Startup Manus Following Pressure from China

Meta, the parent company of Facebook and Instagram, has completely ceased data exchange with the Chinese AI startup Manus. This move followed orders from the Chinese government to cancel a $200 million acquisition deal, citing national security concerns. Meta also separated Manus employees from its internal systems and barred its own employees from using Manus’ AI technologies for internal projects.

Meta has instructed its employees to transfer ongoing Manus projects onto its own platforms as it formally winds down the partnership. The controversy arose after Meta announced in December 2025 its intention to acquire Manus for $200 million. Although Manus, which works on AI technologies, was initially established in China, it had relocated its headquarters to Singapore by mid-2025.

Despite the relocation, Manus’ technology and foundations remained Chinese, which kept it under Chinese government scrutiny. About two months ago, the Chinese authorities ordered the cancellation of the deal, citing that sensitive domestic technology was being transferred abroad and that regulations on technology exports had been violated. Facing this pressure, Meta decided to sever ties with Manus. In response, the Chinese founders of Manus are preparing to reclaim their startup from Meta’s control. They plan to raise approximately $100 million from external investors to buy back the company from Meta. Once sufficient funds are secured, they intend to restructure Manus as a Chinese joint venture and prepare for a future listing on the Hong Kong stock exchange.