Manus Co-Founders Plan $1B Fundraise to Reclaim AI Startup From Meta

Meta completed its acquisition of Manus, a Singapore-registered AI company, in late December 2023, investing over $2 billion to strengthen its AI capabilities across platforms. The deal triggered a Chinese government investigation into potential regulatory violations, leading to travel restrictions on two of Manus’s three co-founders—Xiao Hong, Ji Yichao, and Zhang Tao—and ultimately forcing Meta to reverse the transaction last month. The founding team is now pursuing a $1 billion external fundraising to reacquire Manus, aiming to match or exceed Meta’s original valuation. If external funding falls short, the founders plan to contribute personal capital. Bloomberg reports these discussions are ongoing, though Reuters could not independently confirm the details. Manus has not responded to requests for comment. Manus specializes in developing AI agents designed to function as virtual workforce members, handling research and automation tasks with minimal human intervention. The company operates from Singapore but maintains strong ties to China, making its AI technology a strategic focus for Beijing’s regulatory scrutiny. Should the buyback succeed, Manus could restructure as a Chinese partnership entity, with potential for a Hong Kong stock exchange listing. This shift would mark a transition from U.S.-based ownership back to a China-associated framework. Meta has not commented on the negotiations, but the situation highlights growing tensions between the U.S. and China over tech sector investments. No timeline has been set for the fundraising or a potential public offering, as negotiations remain preliminary. The move underscores Beijing’s intensified oversight of international transactions involving advanced AI companies, particularly those with significant Chinese connections.