By Kashmira Konduparty
The founders of Manus, a Chinese AI startup, are reportedly seeking to raise about $1 billion to reverse Meta’s acquisition of the company after Chinese regulators ordered the deal to be unwound, according to a report by Bloomberg News. The move comes amid growing U.S.-China tensions over advanced artificial intelligence technology and foreign investment scrutiny.
Meta Platforms acquired Manus in late 2025 in a deal reportedly valued at more than $2 billion. Meta planned to use Manus’ AI technology to strengthen advanced AI integration across its platforms and products. Manus specializes in “AI agents” that are capable of independently carrying out research, automation and digital workplace tasks with minimal human input.
READ: China blocks Meta’s acquisition of AI startup Manus (April 27, 2026)
Chinese authorities later launched a review into whether the acquisition violated investment and national security regulations. Beijing eventually ordered Meta to unwind the takeover as scrutiny increased over U.S. investments in sensitive Chinese technology sectors. Reports also said two Manus co-founders were temporarily barred from leaving China during the investigation.
Co-founders Xiao Hong, Ji Yichao and Zhang Tao are now reportedly exploring outside investment options to buy the company back. Bloomberg reported that the founders are discussing a fundraising round that would value Manus at roughly the same level that Meta originally paid. The founders may also contribute personal capital to close any funding gaps.
Reports suggest Manus could eventually operate as a joint venture with new investors. The company may also consider pursuing an IPO in Hong Kong as part of its restructuring strategy. Analysts say the situation reflects how Chinese AI firms are increasingly trying to balance global expansion with Beijing’s tightening technology controls.
READ: China bars co-founders of AI company Manus from leaving country (March 25, 2026)
Manus gained attention for developing advanced autonomous AI agents viewed as competitors to systems being built by OpenAI, Google and Anthropic. The startup had reportedly relocated major operations to Singapore while maintaining Chinese roots and technical teams. The company became one of the most closely watched AI startups in Asia during the global AI boom.
The dispute highlights increasing tension between Washington and Beijing over artificial intelligence, semiconductors and advanced technologies. Both governments have tightened oversight of cross-border technology investments in recent years. Analysts warn the Manus case could make future U.S.-China AI deals more difficult to complete.
The Manus situation underscores the growing importance od AI as both a commercial opportunity and a strategic national security issue. As governments increase oversight of advanced technology deals, global AI companies may face greater regulatory uncertainty in cross-border acquisitions and investments.