Manus to return as independent company after China forced Meta to unwind $2 billion deal

Meta’s $2 billion acquisition of AI startup Manus has been unwound after Chinese regulators ordered the deal reversed, forcing Manus to return to independent operations. The move highlights rising geopolitical scrutiny over cross-border AI deals and tighter Chinese tech export controls amid the U.S.-China race for talent, hardware, and data. For Meta, the reversal is a setback to its AI strategy and consumer/enterprise product plans, though the company continues to push AI monetization through new releases, including a recently launched coding agent. The news is modestly negative for Meta because it removes a potentially important AI asset, while broader market implications center on increased regulatory risk for big-tech M&A in sensitive technology sectors.