Meta cuts off Manus data access, begins unwinding $2B deal

Meta Severs Ties With Manus After China Blocks $2 Billion Acquisition

Meta Platforms has completed an operational split from Chinese-founded AI startup Manus, cutting off all data sharing and barring Manus staff from accessing the company’s internal systems since the beginning of June, according to Bloomberg News.businesstimes

The separation marks the most concrete step yet toward dismantling Meta’s roughly $2 billion acquisition of Manus, a deal Beijing ordered unwound in April. An internal memo viewed by Bloomberg instructs Meta employees to migrate existing Manus projects onto Meta’s own systems and to cease starting new work on the platform. Meta is “sunsetting” Manus, the memo states.thenextweb

A Firewall Between Two Companies

Meta has effectively erected a data firewall between itself and the Singapore-based agentic AI service, according to people familiar with the matter cited by Bloomberg. Meta employees can no longer use Manus tools for internal projects, while Manus personnel have lost access to Meta’s data systems.businesstimes

The ringfencing comes as Manus’s co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — explore ways to comply with Beijing’s demand, including raising approximately $1 billion from outside investors to fund a buyback, Reuters reported in May.reuters

Some Manus features, including connections to Meta’s Ads Manager and Instagram, reportedly remain active despite the firewall, raising questions about how complete the current separation truly is.thenextweb

From Acquisition to Unraveling

Meta announced its acquisition of Manus in late December 2025, aiming to integrate the startup’s autonomous AI agent technology across its platforms. China’s Ministry of Commerce launched a review of the deal in January 2026, and by late April, the National Development and Reform Commission issued a rare order blocking foreign investment in Manus and directing both parties to reverse the transaction.cnbc

The decision caught investors off guard, particularly because Manus had relocated from China to Singapore before finalizing the agreement. Meta said at the time that “the transaction complied fully with applicable law” and expressed hope for a resolution.bbc

What Comes Next

The financial mechanics of reversing a completed acquisition in which investors have already been paid remain unresolved. The operational split announced this week addresses the technical entanglement between the two companies but leaves the broader question of ownership and compensation unanswered. The episode has cast a chill over cross-border technology deals involving Chinese-founded startups, as Reuters noted, with Beijing signaling a willingness to extend its reach even to companies that have moved offshore.reuters