Manus to resume independent operations after China blocks Meta deal

AI startup Manus announced on August 11 that it will resume operating as an independent company, following an order from Chinese regulators to unwind its multibillion-dollar acquisition by Meta. The decision marks the end of a months-long process that began when China's National Development and Reform Commission (NDRC) blocked the deal in April, citing national security and foreign investment rules.

The acquisition, valued at over $2 billion, was first announced on December 29, 2025. Meta, the parent company of Facebook, had sought to acquire the Singapore-based startup, which was developed by China's Butterfly Effect, to bolster its position in the competitive field of autonomous AI agents. However, the deal faced immediate scrutiny from Beijing. In April 2026, the NDRC formally ordered both parties to withdraw from the transaction, stating it was not in accordance with state laws.

As part of the mandated separation, Manus stated that some user data will be deleted. Specifically, data generated by certain users in specific jurisdictions from December 29, 2025 onward must be removed to comply with regulatory requirements. The company has notified affected users and provided a...