June 18, 2026, (Inside AI) — The original Chinese investors of AI startup Manus are planning to repurchase the company from Meta Platforms at the $2 billion price Meta paid, according to a report by The Information.
A Forced Reversal Under Government Orders
The buyback move responds to a directive from the Chinese government to reverse the acquisition. Two people with direct knowledge of the matter confirmed the development to The Information on Thursday.
Meta had acquired Manus earlier, but the exact timeline of that deal remains unclear. The Chinese government's intervention suggests heightened scrutiny over foreign ownership of domestic AI assets.
Why Beijing Is Pulling the Plug
China has increasingly tightened control over technology firms with strategic value. Forcing a sale reversal indicates Manus may possess capabilities deemed critical to national interests.
AI startups working on foundational models or sensitive data processing often face regulatory hurdles. This case mirrors past actions where Beijing blocked or unwound deals involving Chinese tech talent or intellectual property.
Manus and the Shifting AI Landscape
Manus, though less known globally, operates in a competitive AI market. Its investors likely see long-term value in retaining domestic control, especially as China pushes for self-sufficiency in artificial intelligence.
The $2 billion valuation reflects both the premium Meta paid and the urgency of the investors to comply with state orders. No details emerged on how the buyback will be financed or structured.
What Meta Stands to Lose
Meta has been aggressively expanding its AI portfolio. Reversing the Manus deal could disrupt its plans, though the company has not commented publicly on the report.
For Meta, the forced sale underscores the geopolitical risks of cross-border AI acquisitions. The company may face similar challenges with other Chinese-linked ventures.
Implications for Global AI Deals
This development signals that governments are treating AI firms as critical infrastructure. Investors and acquirers must now weigh regulatory pushback more heavily in cross-border transactions.
The Manus case could set a precedent, especially if other nations follow China's lead in scrutinizing foreign ownership of AI startups. The outcome will be closely watched by venture capital and tech giants alike.
