AI firm Manus to operate independently after China vetoes Meta sale

AI startup Manus announced it will resume operations as an independent company, months after China vetoed its acquisition by U.S. tech giant Meta. The company informed users that it will delete data generated from Dec. 29, 2025, between Aug. 23 and Aug. 24 to meet regulatory requirements in certain jurisdictions. Users were urged to back up their data before Aug. 23.

Manus, originally founded in China and later based in Singapore, gained recognition for its AI agents, which can perform complex tasks with fewer instructions than traditional chatbots. Meta acquired Manus for $2 billion in December 2025, shortly after the company moved its headquarters and key technical team to Singapore. In April, Chinese authorities officially blocked the acquisition, citing increasing scrutiny over Chinese-origin AI firms relocating sensitive headquarters, talent, data, or technology abroad.

Following the blocked Meta deal, the Financial Times reported in July that Chinese tech giant Tencent was in negotiations to become Manus's largest shareholder. This move aimed to reverse Meta's purchase and maintain Manus's $2 billion valuation. The situation unfolded amid stricter Chinese regulations on overseas investments and indirect transfers of technology, data, or specialized personnel, highlighting the intense competition between China and the United States for strategic technologies. The controversy surrounding Manus's control is also part of the rapid advancement of China's AI sector, where companies like DeepSeek, Alibaba, Tencent, Zhipu, and Moonshot are developing more affordable models than their U.S. counterparts, albeit under close regulatory supervision.