Manus original investors seek to buy back AI startup from Meta for $2 billion as revenue nears $500 million

Meta’s $2 billion acquisition of AI startup Manus may be heading for an unusual reversal.

The early investors who backed Manus before its sale to Meta are now exploring a plan to buy the company back at the same $2 billion valuation, according to a report from The Information citing people familiar with the discussions. The move comes as Manus has posted significant growth since the acquisition, with annualized revenue reportedly climbing to between $400 million and $500 million, up from roughly $100 million when Meta acquired the company.

“The early Chinese backers of AI firm Manus are planning to buy the firm back from Meta Platforms at the $2 billion price Meta paid, in response to a Chinese government order that the deal be reversed,” The Information reported, citing two people with direct knowledge of the matter.

The proposed buyback follows months of pressure from Chinese regulators, who ordered Meta to unwind the deal after launching a review of the acquisition. Beijing has stepped up scrutiny of foreign ownership in Chinese companies developing advanced artificial intelligence technologies, placing transactions involving strategic AI assets under a microscope.

According to The Information, several of Manus’ earliest backers are involved in the effort, including HSG, ZhenFund, and Tencent. The report said HSG and ZhenFund are considering raising fresh capital to purchase Meta’s stake in the company.

The situation highlights the growing tension between global AI investment and national security concerns. Governments across the United States, China, and Europe have become increasingly protective of AI technologies viewed as strategically important, particularly those tied to autonomous systems, large language models, and advanced computing infrastructure.

Meta acquired Singapore-based Manus in December to strengthen its position in agentic AI, an emerging category focused on software systems capable of carrying out complex tasks with limited human oversight. At the time, the deal was viewed as part of Meta’s broader effort to compete with rivals investing heavily in AI agents and automation,” Reuters reported.

China’s concerns surfaced soon afterward. In April, the country’s National Development and Reform Commission announced that the transaction must be withdrawn in accordance with existing foreign investment regulations. The agency did not publicly provide detailed reasoning, though the order effectively blocked Meta from fully integrating the company.

Since receiving the directive, Meta has reportedly taken steps to separate the two businesses operationally. Bloomberg reported last week that Meta halted data-sharing arrangements with Manus and implemented an internal split between the organizations as regulators reviewed the transaction.

The timing is notable. Rather than slowing down after the acquisition, Manus appears to have accelerated. The Information reported that annualized revenue has increased as much as fivefold in recent months, reaching as high as $500 million.

That growth may help explain why early investors are interested in reclaiming ownership.

The report added that Manus is evaluating a restructuring that would convert the company into a China-incorporated joint venture, a move that could eventually support a public listing in Hong Kong. Benchmark, one of the company’s investors, is reportedly not participating in the proposed buyback effort.

For Meta, the outcome could become one of the most closely watched examples of how geopolitical tensions are reshaping the global AI industry. What began as a major acquisition aimed at strengthening Meta’s AI ambitions may end with the company exiting one of its fastest-growing AI investments.

Manus Founder