Meta is actively preparing to unwind its acquisition of AI startup Manus, according to a report from the Wall Street Journal. The move comes as a Chinese deadline looms requiring the company to restore all Chinese assets and remove any transferred data and technology from its systems.
Complications have emerged because Meta has already integrated Manus's technology into its own systems, and investors—including venture capital firm Benchmark—have already received their returns. Failure to comply with Beijing's demands could result in penalties.
Multiple former Asian investors, including Tencent, HSG, and ZhenFund, are reportedly planning to cooperate with the unwinding process. Before the ban, negotiations were still underway over potential concessions, such as the departure of the founders as a compromise.
Investors with stakes in Chinese AI companies warn that such moves could deter foreign backers from China's tech sector.