(May 21): The co-founders of Manus are exploring options to fulfil Beijing’s demand to unwind a controversial takeover by Meta Platforms Inc, including raising about US$1 billion ($1.28 billion) from external investors to buy back the Chinese-founded AI operation.
Manus’s three founders — Xiao Hong, Ji Yichao and Zhang Tao — are in discussions about a round of funding at a valuation that would at least match the US$2 billion Meta paid to acquire the agentic AI outfit, according to people familiar with the matter. The founders may chip in with their own money to finance the rest of the transaction, the people said. If they go ahead, the next step would entail setting Manus up as a Chinese joint venture with those backers, ahead of a Hong Kong initial public offering, one of the people said, requesting not to be named discussing private deliberations.
The discussions underscore the controversy surrounding Meta’s acquisition of the Chinese-founded AI startup, which triggered concerns about a loss of valuable technology and talent to an American company. Critics pointed to how the once-celebrated agentic AI pioneer was created in China but moved to Singapore shortly after to facilitate an acquisition. Beijing in April demanded the cancellation of the deal — months after Meta’s announcement, and with much of the transaction completed.
Reversing a major deal within months of completion is virtually unheard-of. Some investors though have expressed interest in joining a repurchase because Manus was projected to generate about US$1 billion in revenue this year, the people said.
But those plans remain preliminary, the discussions around Manus’s valuation remain fluid, and the three founders may ultimately decide against proceeding, the people said. There remain hurdles to address, the people said. It’s unclear how new owners would carve out Manus’s agentic AI technology, much of which has been integrated into Meta’s systems.
Meta representatives didn’t have immediate comment when contacted by Bloomberg News. A Manus spokesperson didn’t immediately respond to queries.
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Manus, once hailed as a breakthrough that would challenge Silicon Valley’s dominance, is turning into a cautionary tale for Chinese entrepreneurs.
With last month’s demand, Beijing’s regulators conveyed their determination to prevent the transfer of sensitive technology to geopolitical foes at all costs. It followed a decision to bar major tech firms including ByteDance Ltd and Moonshot AI from taking American capital without approval, and a clampdown on offshore Chinese companies seeking to list in Hong Kong.
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Manus’s founders got their start in China but relocated their headquarters and key staff to Singapore in 2025. When the deal was announced in December, it wasn’t clear whether Beijing would exert its authority on a transaction that technically took place beyond its borders.
The founders are now deliberating what amounts to a partial reversal of that process, in addition to unwinding Meta’s acquisition.
A Manus joint venture based in China would still allow it to attract US-dollar funding, while becoming more compliant in corporate structure, the people said.
Still, it’s unclear how Meta would unwind the deal on a practical level. Manus employees have joined Meta, capital has been transferred and the startup’s executives are now part of the US firm’s rapidly expanding AI team.
Manus staffers have already moved into Meta offices in Singapore, while investors including Tencent Holdings Ltd, ZhenFund and HSG have received their proceeds, people familiar with the matter said previously. Tencent, HSG and Zhenfund representatives didn’t immediately respond to requests for comment.
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