Meta splits from Manus, halts data access as $2B AI deal unwinds under China pressure

Meta in a major shake-up has carried out an operational split from Manus, marking a significant shift towards unwinding a $2 billion acquisition of the startup opposed by China.

As reported by Bloomberg, in a recent shift the parent company of Instagram and Facebook has not only erected a firewall between itself and Singapore-based Manus but also restricted data sharing between these two platforms.

According to the sources privy to the matter, the Manus staff cannot access the Meta’s internal data system since the start of the month. And Meta employees will also not be allowed to use Manus tools.

According to an internal memo, Meta is also “sunsetting” the start-up by instructing staff to migrate existing Manus projects onto Meta's systems.

The ringfencing comes as Manus' three founders including Xiao Hong, Ji Yichao, and Zhang Tao are exploring a buyback to undo the acquisition demanded by Beijing. To achieve this, they have to raise at least equivalent to US $2 billion paid by Meta for acquisition.

The Meta has done this unwinding under the pressure of China’s regulators. As per their concerns, the acquisition would hand over key technologies to the US, a geopolitical rival in the landscape of AI. In 2025, Manus relocated its headquarters to Singapore. Despite this relocation, China did not back down.

Investors such as Tencent Holdings, ZhenFund, and HSG have already received their proceeds from the acquisition. Manus staff have also moved into Meta's offices in Singapore.