Inside Manus's $2 Billion Buyback: How Original Chinese Investors Plan to Reclaim the AI Startup from Meta

In a historic regulatory intervention, China's National Development and Reform Commission (NDRC) ordered Meta to unwind its $2 billion acquisition of AI startup Manus on national security grounds in April 2026. Now, Manus's original Chinese investors are planning a full $2 billion buyback to reclaim the company from Meta. This is the story of how one of the most dramatic cross-border tech deals unravelled — and what happens next.

The Original Acquisition

In December 2025, Meta acquired Manus, an agentic AI startup founded by Chinese engineers that had relocated to Singapore, for over $2 billion — reported by some sources as high as $2.5 billion . The deal was designed to boost Meta's capabilities in autonomous AI agents. By the time regulators stepped in, Meta had already integrated Manus's operations, staff, and data systems .

Regulatory Investigation and Block

• January 2026 — China's NDRC launched and then deepened a foreign investment security review of Meta's Manus buyout, raising the risk that regulators would seek to alter or unwind the deal .
• April 27, 2026 — The NDRC formally blocked the acquisition on national security grounds, ordering the transaction reversed. This was the first public use of China's foreign investment security review mechanism on a consummated deal . The decision was announced in a terse one-line statement with no detailed explanation .
• Rationale — Beijing cited concerns about the transfer of advanced Chinese AI technology to the U.S. amid an intensifying tech war . Analysts said the move signaled that relocating offshore — e.g., moving to Singapore — no longer shielded Chinese-founded startups from Beijing's regulatory reach .

Meta's Compliance Steps

Throughout mid-2026, Meta executed an operational dismantling of the deal:

• Operational separation — By June 11, 2026, Meta completed a full operational split from Manus .
• Data halt — All data sharing between Meta and Manus was halted .
• System access cut — Manus staff were cut off from Meta's internal data systems .
• Internal ban — Meta employees were prohibited from using Manus tools for internal tasks .
• Legal unwinding — Meta began the formal process of reversing the share transfer and recovering the consideration, a complex task given the integration already underway .

The Buyback Efforts (Two Phases)

Two separate buyback approaches have been reported:

Phase 1: Co-Founders Seeking ~$1 Billion (May 2026)

In late May 2026, Bloomberg reported that Manus's three co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — were exploring raising approximately $1 billion from external investors to buy back the Chinese-founded AI operations from Meta . The fundraising was discussed at a valuation of around $1.5–2 billion — a discount from Meta's purchase price . The same sources noted the co-founders were in talks with "original Chinese investors" to finance this deal, with a plan to restructure Manus as a Chinese joint venture and pursue a Hong Kong IPO afterward .

Phase 2: Original Chinese Investors Planning a Full $2 Billion Buyback (June 18, 2026)

On June 18, 2026, Reuters and The Information reported that Manus's original Chinese investors are now planning to repurchase the AI firm from Meta at the same $2 billion valuation Meta originally paid . The Information, citing two sources familiar with the matter, said these early backers are in discussions for a deal that would reverse the acquisition in full . Among the early investors named are HSG (formerly Sequoia China), ZhenFund, and Tencent .

Restructuring and Hong Kong IPO Plans

Under both buyback scenarios, the plan is to:

• Restructure as a Chinese joint venture — reconstituting Manus under Chinese ownership and governance .
• Pursue a Hong Kong IPO — listing on the Hong Kong Stock Exchange as a longer-term exit or fundraising goal .

Ongoing Challenges

Several complications remain unresolved:

• Valuation gap — The co-founders' $1 billion fundraising target implies a valuation below the $2 billion Meta paid, creating a potential shortfall . The newer $2 billion buyback plan from original investors would close that gap but requires different financing.
• Operational separation complexity — Meta had deeply integrated Manus into its internal systems; disentangling people, IP, and data is legally and technically difficult .
• Regulatory path — Any buyback and restructuring plan still needs Beijing's approval to satisfy the NDRC order, and the exact compliance requirements remain unclear .
• Uncertain buyer group — It is not yet clear whether the "original Chinese investors" are a single consortium, a mix of the co-founders and new funds, or a different set of backers entirely .
• Meta's write-down risk — Meta may have to take a significant financial loss on the deal depending on the final buyback price and the costs of unwinding integration .