Meta is unwinding its $2 billion acquisition of AI startup Manus after China's government blocked the deal, with Manus resuming independent operations effective today, the company announced Monday.
China's National Development and Reform Commission vetoed the transaction in late April following a months-long review, marking a rare forced retreat by Meta in a major technology deal. Beijing has tightened scrutiny of foreign acquisitions in AI and other sensitive technology sectors.
Meta announced the Manus purchase in December 2025 as part of Chief Executive Mark Zuckerberg's stated push to strengthen the company's artificial intelligence capabilities ahead of competitive pressure from OpenAI and other rivals. The startup, founded by former Meta roboticist David Guérard, had built control systems for humanoid robots and industrial automation. Meta had framed the acquisition as essential to its roadmap for embodied AI development.
China's NDRC rejected the deal on April 27, citing unspecified national security concerns tied to the company's AI and robotics capabilities. Beijing is blocking or delaying foreign acquisitions in advanced technology as it seeks to consolidate domestic AI development under state oversight. China has blocked or delayed at least 14 major foreign tech acquisitions since 2023, according to trade data compiled by the Chinese Academy of Social Sciences.
Manus's return to independence ends a rare instance of a Meta acquisition facing regulatory rejection at the final stage. Meta completed 87 acquisitions between 2009 and 2025 without comparable national government intervention, though the company's deal-making has faced growing scrutiny in the United States, European Union, and Britain. The unwinding requires Meta to reverse integration of Manus systems and personnel, a process the companies said would conclude by year-end.
Meta declined to comment on internal costs of the unwind or whether the company would pursue alternative AI robotics partnerships. Manus said it had secured unspecified funding to operate independently and would continue work on automation software for industrial clients.
China's successful block represents a shift in Meta's acquisition history against the backdrop of tightening foreign investment controls tied to AI development that Beijing views as strategically sensitive. Manus held no material revenue at the time of Meta's offer, meaning the deal's failure removes no current revenue from Meta's books, but it delays the company's stated path to embodied AI by at least the time required to identify and integrate an alternative technology asset.
