AI startup Manus is preparing to return to independent operations as it separates from Meta following the unwinding of the technology giant’s planned $2 billion-plus acquisition of the company.
The company said Tuesday that it is separating from Meta and that some users will have their data deleted as part of the transition. Manus said data generated by certain users on or after Dec. 29, 2025, will be deleted later this month to comply with regulatory requirements in specific jurisdictions.
Affected users will be notified through the Manus app and by email and will have an opportunity to back up their data before deletion. Manus did not specify which jurisdictions’ regulations prompted the move.
China blocks Meta’s Manus acquisition
Meta announced plans to acquire Manus in December as part of its push to strengthen its artificial intelligence ambitions. Manus develops general-purpose AI agents designed to perform tasks on behalf of users, including browsing the internet, conducting research and generating reports.
The startup was founded in China in 2022 but later moved its operations to Singapore. The move enabled Manus to access U.S. AI models and advanced semiconductor chips while helping pave the way for its eventual acquisition by Meta.
However, the acquisition quickly attracted attention from Chinese regulators. In April, Beijing ordered Meta to unwind the transaction as China increased scrutiny of U.S. investment in Chinese startups working on advanced technologies. The decision came as the U.S. and China continued to tighten controls around advanced technology, AI development, and cross-border transfers.
This created an unusual situation for both companies. Rather than simply canceling an acquisition before it closed, Meta and Manus had to unwind an arrangement, which required them to separate technology, data, and personnel that had become connected through the acquisition.
According to Bloomberg, Meta had shared tools and data with Manus after the deal was announced but subsequently established an internal firewall as the separation process got underway.
Manus returns to independence
Manus said it will “soon resume operating as an independent company,” although the company has not provided extensive details about its future structure or ownership.
The company’s return to independence comes after Meta had begun incorporating Manus’ agent technology into its own products. The South China Morning Post reported that Manus’ agentic AI capabilities had been integrated into products including Instagram, while some Manus employees gained access to Meta offices and corporate accounts in Singapore.
For Manus users, the most immediate consequence of the breakup is the potential loss of some data; however, Manus said users affected by the data deletion will be contacted and given a chance to back up their information. The company did not identify the specific regulatory requirements behind the deletion.
Manus said user data will continue to be stored in the U.S. and Singapore after the separation is completed, according to the South China Morning Post. The South China Morning Post reported that unaffected users should be able to continue using Manus without disruption.
The Chinese-founded company has not provided many details about its future ownership or corporate structure beyond saying that it will resume operating independently. However, the startup’s ownership may also change.
Reuters reported in July that Chinese technology company Tencent was in talks to become Manus’ largest shareholder. Former Manus investors including ZhenFund and HSG were also reportedly involved in discussions surrounding the company.
Tencent's potential involvement would give Manus a major Chinese technology backer as the company returns to independent operations.
A sign of growing AI geopolitical risks
The Manus situation just goes to show the growing challenges facing AI companies operating across U.S. and Chinese technology ecosystems.
For startups developing advanced AI agents, access to computing resources, models, investment and international markets can be critical to growth. At the same time, those connections can create regulatory complications when governments view AI as a strategic or national-security technology.
For Meta, the failed acquisition represents another setback in its effort to compete with major AI companies and build AI-powered products for consumers and businesses. For Manus, meanwhile, independence provides a path forward but leaves the company navigating the same geopolitical pressures that helped derail its acquisition.
As governments increasingly treat advanced AI as strategically important technology, cross-border acquisitions are becoming more complicated. The Manus situation shows that moving a startup's headquarters or operations may not eliminate the regulatory questions surrounding its technology, investors, or origins.
As AI agents become increasingly capable of performing tasks autonomously, the Manus case could serve as an early example of how regulatory and geopolitical concerns may shape who can own, operate, and access the technology.
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