Chinese Investors Move to Reclaim AI Startup Manus from Meta Amid Regulatory Pressure

By Francisca Anuforo,

A group of Chinese investors is reportedly seeking to buy back fast-growing artificial intelligence startup Manus from Meta, in a move that underscores the growing geopolitical tensions shaping the global AI industry.

According to a report by The Information, early backers of Manus, including HSG, ZhenFund and Tencent, are exploring plans to acquire the stake purchased by Meta in a deal valued at approximately $2 billion.

The reported buyback effort follows increased scrutiny from Chinese regulators, who earlier this year ordered Meta to unwind its acquisition of the AI startup as Beijing tightened oversight of foreign investments involving strategically important artificial intelligence technologies.

Neither Meta, Manus nor the investors involved have publicly commented on the development.

AI Startup’s Rapid Growth Fuels Investor Interest

The move comes as Manus has experienced significant growth since attracting Meta’s interest.

Reports indicate that the company’s annualised revenue run rate has increased dramatically, rising from about $100 million at the time of the acquisition to between $400 million and $500 million in recent weeks.

The strong growth trajectory has strengthened investor confidence in the company’s long-term prospects and appears to be driving renewed efforts by its original backers to regain ownership.

Industry observers note that the development reflects the increasing value being attached to companies building next-generation AI systems, particularly those focused on autonomous digital agents.

The Race for Agentic AI

Manus specialises in developing AI agents capable of carrying out complex tasks with minimal human intervention, an emerging segment known as agentic AI.

The technology is attracting significant attention from global technology companies seeking to move beyond traditional generative AI tools toward systems that can independently perform business processes, conduct research, automate workflows and execute digital tasks.

Meta acquired Singapore-based Manus in December as part of its broader strategy to strengthen its position in the rapidly evolving AI landscape.

However, the deal quickly attracted regulatory attention in China, where authorities have become increasingly cautious about foreign ownership of companies developing advanced technologies considered strategically important.

Regulatory Tensions Reshape AI Investments

Following Beijing’s intervention in April, reports suggest Meta has already begun separating certain operations from Manus and halted data-sharing arrangements between the two companies.

The development highlights the growing fragmentation of the global AI ecosystem, where national security concerns and technological sovereignty are increasingly influencing investment decisions, mergers and acquisitions.

Analysts believe such regulatory interventions could become more common as countries seek greater control over AI assets, intellectual property and critical digital infrastructure.

Hong Kong Listing Under Consideration

As part of its future strategy, Manus is reportedly exploring a restructuring that could see the company become a China-incorporated joint venture.

Such a move could pave the way for a future listing on the Hong Kong Stock Exchange, potentially providing access to regional capital while maintaining closer alignment with Chinese regulatory requirements.

Not all existing investors are expected to participate in the proposed buyback. Reports indicate that Benchmark, one of Manus’ early backers, is unlikely to join the process.

Implications for the Global AI Industry

The Manus saga reflects a broader trend reshaping the AI industry worldwide. As artificial intelligence becomes increasingly central to economic competitiveness and national development strategies, governments are taking a more active role in overseeing ownership and control of AI companies.

For emerging technology markets, including Africa, the development highlights how geopolitical considerations are becoming as important as technological innovation in determining the future direction of the AI economy.

The outcome of the Manus buyback effort could serve as another important test case for how global technology firms, investors and regulators navigate the increasingly complex intersection of artificial intelligence, capital markets and national interests.