Manus early investors plan $2 billion buyback from Meta (META) amid China regulatory pressure

Early investors in Chinese AI startup Manus are reportedly planning a $2 billion buyback of the company from Meta Platforms (META) following pressure from Chinese regulators. The proposed buyback price matches Meta's acquisition cost in December 2025. This move comes as Beijing intensifies scrutiny over U.S. investments in advanced Chinese AI technology. The Chinese government reportedly requested Meta to reverse its acquisition of Manus in April 2026, citing concerns over capital outflow and AI technology. Participating early investors include HSG (formerly Sequoia China), ZhenFund, and Tencent (00700.HK), with HSG and ZhenFund considering new fundraising for the deal. Manus, which specializes in Agentic AI, has seen its annual revenue climb to $400-$500 million recently, up from approximately $100 million at the time of Meta's acquisition. The company is also reportedly considering restructuring into a China-registered joint venture, potentially preparing for a Hong Kong IPO.