Manus to resume independent operations as Meta deal unwinds

AI startup Manus announced on Tuesday that it will resume operating as an independent company, marking a major step in unwinding its acquisition by Meta ↗ 1.36% after Chinese regulators blocked the deal on national security grounds.marketscreener+1

User Data Deletion Planned

As part of the separation, Manus said data generated by certain users on or after December 29, 2025 — the date Meta completed its acquisition — will be deleted on August 23 and 24, with affected accounts locked during that period. Users have until 7:59 a.m. Singapore time on August 23 to back up their data using a tool the company made available Tuesday.sqmagazine+1

"This is part of our separation from Meta; we must take this step to comply with regulatory requirements in specific parts of the world," Manus said in a statement, adding that the deletion "is not the result of any security incident". Affected users will be notified through the Manus app and by email, the company said.marketscreener+1

Beijing Ordered the Deal Unwound

Meta announced its acquisition of the Chinese-founded AI startup in late December 2025 at a reported price above $2 billion. In April 2026, China's National Development and Reform Commission ordered the transaction reversed, as Beijing tightened scrutiny of U.S. investment in Chinese startups developing frontier technologies. Bloomberg reported in June that Meta had cut Manus staff out of its internal systems and halted data sharing between the two companies.bloomberg+2

Reuters reported in July that Chinese gaming and internet company Tencent has been in talks to become Manus' largest shareholder. The company's founders have been working to raise about $1 billion to buy it back.sqmagazine+1

What Comes Next

Manus said it will not charge affected users between August 11 and August 23 and is offering a welcome-back bonus after accounts are restored on August 25. The company has not disclosed which jurisdictions are affected or how many accounts fall within the deletion scope, directing users to check their status through a Help Center page.sqmagazine

The Singapore-headquartered company, founded by Xiao Hong, Ji Yichao, and Zhang Tao, represents an early test case for what happens to user data when cross-border AI deals are forcibly unwound by regulators.sqmagazine