Access to Meta $META's internal data systems has been cut off for Manus and its staff, and Meta employees have been barred from using Manus tools for internal work, as the company moves to operationally separate from the agentic AI startup it bought for $2 billion in December. Bloomberg, which reviewed the internal memo, reported that it characterized the change as a "sunsetting" of Manus and told employees to wind down active projects by shifting them to Meta's own infrastructure rather than initiating anything new on the platform.
The operational split is the most concrete step yet toward unwinding the acquisition after Beijing ordered the deal reversed. China's National Development and Reform Commission directed Meta to unwind the transaction in April, citing unspecified laws and regulations, following a months-long regulatory probe that began almost immediately after the acquisition was announced. Reversals of completed transactions are an uncommon tool for Chinese regulators, making the directive an unusually aggressive intervention.
Though Manus had Chinese roots, the company shifted its base of operations and key personnel to Singapore in 2025, ahead of Meta's December announcement that it was buying the startup. The NDRC's order made clear that offshore incorporation does not shield a deal from Beijing's authority when the underlying technology and talent originated in China — a structure critics had called "Singapore washing." In March, Chinese authorities required co-founders Xiao Hong and Ji Yichao to appear before officials in Beijing, and both have since been prohibited from traveling abroad.
To comply with the unwind order, the three founders — Xiao Hong, Ji Yichao, and Zhang Tao — are exploring raising roughly $1 billion from outside investors to fund a buyback at a valuation matching the $2 billion Meta paid, with the founders potentially contributing personal funds to cover any gap. A successful buyback could eventually lead to a Hong Kong IPO, with Manus reorganized as a Chinese joint venture. Those discussions remain at an early stage and no firm decisions have been made.
The financial mechanics of a full reversal remain unresolved. The path to a clean reversal is further complicated by the fact that early backers — among them Tencent, ZhenFund, and HSG — have already been paid out from the deal, while Manus personnel have taken up workspace inside Meta's Singapore offices. Even with the data firewall in place, certain integrations — such as the ability to connect with Meta's Ads Manager and Instagram — have continued to function, according to The Next Web.
Beijing has since moved to formalize its reach over similar transactions. New outbound investment rules taking effect July 1 give Chinese regulators an expanded framework to block or reverse cross-border deals involving technology, talent, or data with Chinese origins, regardless of where the company involved is incorporated.