Meta cuts off its $2B AI startup Manus from internal systems as it unwinds the deal under Beijing’s reversal order

by | Jun 12, 2026 | Latest E-commerce News & Updates

Meta has cut its agentic AI startup Manus off from internal data systems and barred staff from using its tools, the clearest move yet toward unwinding the $2B acquisition it closed in December after Beijing ordered the deal reversed. China's economic planner ordered the reversal in April, ruling that Manus's 2025 move to Singapore, a structure critics call “Singapore washing,” could not shield a company rooted in Chinese tech and talent from Beijing's authority, and its co-founders have since been barred from leaving the country. Beijing is formalizing that reach with new outbound-investment rules effective July 1 that let regulators block or undo cross-border deals tied to Chinese-origin tech, talent, or data, no matter where a company is incorporated.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Meta

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