Manus co-founders are reportedly exploring a funding round of about $1 billion to regain control of the AI startup following regulatory pressure tied to Meta’s acquisition of the company. According to multiple reports, the move comes after Chinese authorities ordered the unwinding of Meta’s multibillion-dollar takeover of the AI firm.
The discussions could value Manus at more than $2 billion, matching or approaching the valuation Meta paid during the acquisition process. Additionally, the founders may contribute personal capital to support the restructuring effort.
Regulatory Pressure Reshapes AI Deal
Meta acquired Manus in late 2025 to strengthen its position in the fast-growing AI agents market. However, Chinese regulators later reviewed the transaction amid rising scrutiny of foreign involvement in advanced domestic AI technologies. Consequently, Beijing ordered the deal to be reversed as geopolitical tensions around AI infrastructure and talent intensified.
Manus specializes in autonomous AI agents capable of handling research, automation, and operational tasks with minimal human input. The startup gained rapid momentum after launch and reportedly reached an annual revenue run rate of approximately $125 million within eight months.
The acquisition also required Manus to restructure operations outside China and shift its infrastructure toward international markets. Therefore, the integration created additional operational and regulatory complexities for both companies.
AI Industry Watches Cross-Border Impact
The Manus situation highlights growing regulatory challenges surrounding international AI acquisitions. As governments tighten oversight of advanced technologies, companies now face greater scrutiny around AI talent transfers, data systems, and intellectual property controls.
Meanwhile, investors continue monitoring the AI agent sector, where startups developing autonomous AI systems attract increasingly large valuations. Manus remains one of the most closely watched companies in the segment because of its rapid growth, high-profile acquisition attempt, and expanding role in enterprise AI automation.








