The founders of AI startup Manus are exploring ways to unwind Meta’s acquisition of the company after Chinese authorities ordered the U.S. technology giant to reverse the deal amid escalating scrutiny of cross-border AI investments.
According to Bloomberg, Manus co-founders Xiao Hong, Ji Yichao, and Zhang Tao are considering several options to regain control of the company, including raising roughly $1 billion from external investors. The discussions reportedly involve a financing round that would value Manus at a level comparable to the more than $2 billion Meta paid for the acquisition.
The founders may also contribute personal capital to help bridge any funding gap, according to the report.
Meta announced the acquisition of Singapore-based Manus in December as part of its broader push into advanced AI agents and autonomous enterprise systems. However, Chinese regulators later launched a review into whether the transaction violated investment and technology transfer rules.
Last month, Beijing formally ordered Meta to unwind the acquisition as Chinese authorities increased oversight of U.S. investments involving strategically important domestic AI technologies. Two Manus co-founders were also reportedly barred from leaving China during the review process.
Manus develops general-purpose AI agents capable of operating as digital employees that can autonomously perform tasks including research, workflow automation, and operational support with limited human supervision.
The company operates in one of the fastest-growing segments of the AI market as enterprises increasingly adopt autonomous agents capable of handling long-running workflows across software platforms and internal systems.
According to Bloomberg, one possible outcome under discussion could transform Manus into a joint venture backed by new investors while positioning the company for a future IPO in Hong Kong. Such a structure could allow the startup to continue expanding internationally while remaining under greater domestic oversight.
