Manus co-founders seek $1 billion to buy back from Meta in China reversal

The co-founders of artificial intelligence startup Manus are exploring plans to raise approximately $1 billion from external investors to buy back the company from Meta Platforms, following a regulatory order from Chinese authorities to unwind the acquisition. The move comes just months after Meta completed the multibillion-dollar purchase of the Singapore-registered company in late December.

Chinese regulators, citing potential violations of investment rules and national security concerns related to the transfer of AI technology and talent, mandated the reversal of the deal in April. The National Development and Reform Commission initiated an investigation into the transaction soon after its announcement. Authorities also imposed travel restrictions on two of Manus’s three co-founders as part of the review.

According to people familiar with the discussions, co-founders Xiao Hong, Ji Yichao, and Zhang Tao are in talks to secure funding at a valuation that would at least match the price Meta paid, which was over $2 billion. The founders are prepared to contribute personal capital to cover any shortfall. The proposed capital raise and buyback would facilitate compliance with the...