Meta restricts data sharing with Manus as founders explore $2 billion buyback

Meta has erected a firewall between itself and Singapore-based AI startup Manus, restricted data sharing between the two entities, and begun winding down the acquisition — all under mounting pressure from Chinese regulators who oppose the $2 billion deal.

Bloomberg reported the operational split, revealing that the parent company of Facebook and Instagram has moved to ringfence Manus in a significant reversal of one of the year's most closely watched AI acquisitions.

Data access cut, projects being migrated

Manus staff have been barred from accessing Meta's internal data systems since the start of the month, sources familiar with the matter said. Meta employees, in turn, have been prohibited from using Manus tools. An internal memo has also instructed staff to migrate existing Manus projects onto Meta's own systems, with the company formally described as "sunsetting" the startup.

Despite the operational separation, Manus staff have moved into Meta's offices in Singapore — underlining the complicated and ongoing nature of the unwind.

Founders seek $2 billion buyback

The ringfencing coincides with efforts by Manus' three co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — to pursue a buyback that would undo the acquisition entirely. To succeed, the trio must raise a sum at least equivalent to the $2 billion Meta paid to acquire the startup.

Investors including Tencent Holdings, ZhenFund, and HSG have already received their proceeds from the original acquisition.

Beijing's objections drove the reversal

China's regulators drove the operational split, expressing concern that the deal would hand over critical AI technologies to the United States — a geopolitical rival in the global AI race. Manus relocated its headquarters from China to Singapore in 2025, but the move did little to satisfy Beijing, which continued to press for the acquisition to be unwound.