Meta is taking significant steps to comply with a divestiture order from Beijing by initiating a separation from its $2 billion acquisition of Manus, a Chinese-founded AI startup. The operational split involves terminating data sharing and cutting Manus off from Meta's internal systems, effectively preventing Manus tools from being utilized in Meta's projects. This move represents a direct response to national security concerns raised by Chinese regulators.
In light of this separation, the co-founders of Manus are reportedly exploring options to raise around $1 billion from external investors to regain control of the startup. This initiative could lead to the establishment of a Chinese joint venture and potential listing in Hong Kong, which has seen an increase in AI company listings recently.
Despite the ongoing separation, Manus has continued to develop its offerings, launching new features and integrations with platforms like Similarweb and Shopify. The scrutiny surrounding the acquisition has highlighted China's increasing control over its AI sector, with the government implementing tighter regulations on foreign investments and travel for industry executives.