AI startup Manus informed that it will soon return to operating as an independent company after its $2 billion acquisition by US based tech giant Meta failed due to China’s regulatory policies.
In a detailed statement on Tuesday, Manus informed that it will now operate independently to “comply with regulatory requirements in specific parts of the world”.
“Manus will soon return to operating as an independent company, which will see us continue to serve our millions of users around the world. As we go through the process, it’s unavoidable that some users’ accounts will be impacted. This is part of our separation from Meta; we must take this step to comply with regulatory requirements in specific parts of the world,” read a statement from Manus.
The company informed that due to the transition, data generated by certain users on/after December 29, 2025 will be deleted between August 23-24 this year. Affected users will be able to restore data prior to the company deleting them.
Founded in China in 2022 by Xiao Hong under parent company Butterfly Effect, Manus relocated its headquarters to Singapore in June 2025, shutting its China offices and restricting access from Chinese IP addresses. Critics have dubbed the AI startup as “Singapore whitewashing model”
Post its acquisition in December 2025 by Meta in a $2 billion deal, Chinese authorities had raised objections whether the agentic AI system of Manus was developed in China using its digital infrastructure.
In January 2026, China announced a formal enquiry against Manus AI acquisition deal on grounds whether it violated the national security of technology export regulations.
In a brief statement released by China’s National Development and Reform Commission (NDRC), the $2 billion dollar acquisition deal by Meta Inc of Manus AI was cancelled earlier in April this year as the body informed that it will ask both parties to fall back on the deal.
According to NDRC, the decision to prohibit foreign investment in Manus AI was taken in accordance with China’s laws and regulations.
Also Read: China Blocks Meta Deal of Singapore Based Manus AI
