Meta Halts Data Sharing After Beijing Reverses $2 Billion Manus Acquisition
META•Meta has fully severed operational ties with AI startup Manus, halting all internal data sharing after Beijing ordered reversal of its $2 billion acquisition. The separation leaves Manus cut off from Meta’s systems and underscores Beijing’s tightened outbound investment rules effective July 1.
1. Beijing Orders Acquisition Reversal
In April, Chinese regulators invoked their foreign investment security review mechanism to require Meta to unwind its $2 billion purchase of AI startup Manus, marking an unprecedented reversal under the new framework. This action reflects Beijing’s intent to extend oversight of foreign deals affecting sensitive technology sectors.
2. Meta Enforces Operational Separation
Following the regulatory order, Meta cut Manus employees off from all internal data systems and instructed its own teams to cease using Manus tools. This decisive move halts all data sharing and severs integration pathways created during the acquisition.
3. New Outbound Investment Rules Take Effect
Beijing’s outbound investment regulations, effective July 1, broaden government authority over overseas deals involving strategic technologies and allow penalties for firms in countries that restrict Chinese investment. This tightening raises compliance risks for global tech M&A and could reshape future cross-border partnerships.
