Manus Eyes $1bn Raise to Buy Out of Meta Acquisition After Chinese Block
May 21, 2026 – 8:58 am
Beijing has ordered the Singapore-via-China agentic AI startup, Manus AI, to reverse Meta’s $2bn-plus December acquisition. In response, as reported by Bloomberg, Manus plans to raise up to $1bn to buy itself out of the deal.
Manus AI, headquartered in Singapore, was at the center of a Chinese regulatory block on Meta’s acquisition. The company’s unique history—founded in China, relocated to Singapore after a US-led funding round—has been a key factor in the regulatory decision. China’s National Development and Reform Commission (NDRC) cited possible violations of investment rules and concerns about AI technology outflow.
The unwind process is underway, with Meta preparing under a regulator-imposed deadline. Manus aims to use the proposed $1bn raise to repurchase Meta’s interest, fund data removal, separate operations, and capitalize its standalone business through the next year. The company boasts an impressive reported annual recurring revenue (ARR) run-rate of over $100m, achieved within eight months of launching its first general-purpose AI agent.
This development has significant geopolitical implications. It demonstrates Beijing’s willingness to enforce cross-border investment rules on Singapore-headquartered companies with Chinese-origin technology. This sets a precedent for future US-led AI deals involving companies with Chinese roots, regardless of their current incorporation.
The raise positions Manus to stand alone in the agentic AI category with a robust balance sheet, and Singapore emerges as a key hub for AI activities, with announcements like OpenAI’s $235m lab investment in the same week.