Chinese Regulators Intervene to Block Completed AI Startup Deal
The founders of Singapore-registered AI startup Manus (Manus AI) are in discussions to buy back the company from Meta Platforms for approximately $1 billion. The move follows an intervention by China’s National Development and Reform Commission (NDRC) in April 2026, which blocked Meta’s completed $2 billion acquisition of the startup, citing national security concerns and the export of strategic artificial intelligence technology.
Manus specializes in autonomous AI agents capable of executing multi-step digital workflows. Although the startup was registered in Singapore, its engineering talent and core intellectual property are based in mainland China, bringing it under the jurisdiction of Chinese technology export controls. The NDRC ordered both companies to unwind the transaction and return to pre-acquisition structures.
unwinding Corporate Integrations and Reorganizing Capital
Unwinding the transaction presents operational challenges, as Manus’s engineering teams had already integrated into Meta’s organizational structure and begun deploying technology into products like WhatsApp Business. The founders, led by Ji Yichao and Zhang Tao, are working with Asian venture capital firms to raise the $1 billion required to repurchase the shares from Meta. If successful, the company plans to reorganize as a joint venture with a potential listing on the Hong Kong Stock Exchange.
