Why China forced Meta to unwind its $2 billion Manus AI acquisition

Manus's actions on user data during the transition

Manus told users that, as part of separating from Meta and complying with Beijing's order, some user data will be deleted . Specifically:

• Data created by users after the deal was announced (i.e., during the period Manus operated under Meta ownership) may be affected .
• Manus advised affected users to back up their data before the separation; after the split, they will need to restore that data .
• The company noted its user data is stored in Singapore and the U.S. .

The data deletion and operational separation are designed to ensure no Chinese user or technology data remains accessible to Meta post-divestiture .

Key background on Manus — founding, operations, and history

• Founded: 2022 in Beijing, China, by entrepreneur Xiao Hong (CEO), along with co-founders Ji Yichao (Chief Scientist) and Tao Zhang . Xiao Hong previously built WeChat productivity tools; Ji Yichao has a background in AI research .
• Company entity: Butterfly Effect Pte. Ltd., the developer behind Manus .
• Relocation: Manus moved its headquarters to Singapore in early 2025, before the Meta acquisition was announced .
• Product: Manus is a general-purpose autonomous AI agent — launched publicly in March 2025, it allows users to assign complex tasks to an AI that can execute them independently (often called "agentic AI") .
• Growth: The startup achieved $100 million in annualized recurring revenue (ARR) within 8 months of launch — reportedly faster than any startup in history .
• Acquisition by Meta: Announced in December 2025, Meta said it would acquire Manus for an estimated $2 billion to $3 billion to integrate Manus's agent technology into its platforms .
• Post-collapse plans: Manus's founders are reportedly trying to raise $1 billion for a buyback to regain full control of the company .