Chinese gaming and internet company Tencent is in talks to become Manus' largest shareholder, as investors seek alternatives after Beijing ordered Meta to unwind its $2 billion acquisition of the AI startup, sources familiar with the matter told Reuters.
Tencent, together with Manus' original investors including ZhenFund and HSG, is planning to buy the company back from Meta for no less than $2 billion, according to sources.
Geopolitical Tech Tensions
Manus, which develops AI agents that can autonomously carry out tasks with minimal human input, moved its operations to Singapore from China last year. Meta announced the acquisition in December in a bid to bolster its work on agentic AI.
However, China launched a review in April into whether the deal violated investment rules. The order was the latest high-profile case of China blocking or challenging a cross-border transaction involving a non-China-incorporated company, amid increasing geopolitical tensions between Beijing and Washington.
Since Beijing's order, Meta has executed an operational split from Manus internally and stopped data sharing between the firms, Bloomberg News reported last month.
Manus: China's Next AI Sensation
Manus was hailed early last year by state media and commentators as China's next major AI breakthrough after releasing what it said was the world's first general AI agent. The startup's technology allows AI to autonomously complete complex multi-step tasks — from research analysis to document creation — with minimal human guidance.
Tencent's AI Ambitions
The deal would significantly expand Tencent's AI footprint. The Shenzhen-based company, already one of China's largest technology conglomerates with interests spanning gaming, social media, cloud computing, and fintech, has been investing heavily in AI infrastructure.
Tencent operates its own large language models and has been integrating AI across its product ecosystem, including WeChat. Adding Manus' agentic AI capabilities would position the company as a stronger competitor in the race to build practical AI agents.
Neither Tencent, Manus, Meta, nor the investment firms immediately responded to Reuters' requests for comment.
