Meta Platforms has taken a major step toward undoing its acquisition of Manus, cutting off data sharing and splitting operations between the two companies after months of pressure from Beijing over the deal.
People familiar with the matter said Meta has now created a practical separation from the Chinese-founded agentic AI service, effectively building a firewall between the businesses. The changes mark the clearest sign yet that the social media giant is preparing to reverse the $2 billion takeover.
According to those people, Meta has blocked Manus and its employees from accessing the company’s internal data systems since the start of the month. Meta staff, meanwhile, can no longer use Manus tools in their own internal work. The sources asked not to be identified because the arrangements are private.
The move comes after Chinese regulators opposed the acquisition, complicating what had once been seen as a high-profile bet on AI. Manus was widely viewed as a promising entrant in the agentic AI market and was at one point described as a potential challenge to Silicon Valley’s dominance.
Bloomberg previously reported that China was moving to block Meta’s attempt to buy the company. The pressure from Beijing appears to have left Meta with little choice but to rework or unwind the deal, even after initially moving forward with the acquisition.
Meta has not publicly commented on the latest operational split. The company’s actions, however, suggest that data access and internal integration are being rolled back in a deliberate way rather than abruptly severed.
The Manus situation adds another complication to Meta’s wider push into artificial intelligence, which has included significant spending and a series of AI-related initiatives this year. The company has been expanding its AI capabilities aggressively, including through acquisitions and internal model development, even as it faces pressure to manage costs and regulatory risks.
Manus was acquired to bolster Meta’s position in the fast-moving AI race, especially in systems built to perform tasks more autonomously. The reversal underscores how geopolitical and regulatory barriers can disrupt even large technology transactions, particularly when Chinese assets are involved.
For now, the operational split appears to be the most concrete evidence that Meta is preparing to disentangle itself from the deal. The data restrictions and loss of mutual tool access point to an acquisition that is no longer being treated as a fully integrated part of Meta’s business.
The next step, whether through a formal unwind or another restructuring, remains unclear. But the company’s decision to sever internal access suggests that the acquisition is already being rolled back in practice.