Tencent is in discussions to become the largest shareholder in AI startup Manus, as a group of investors orchestrates a $2 billion buyback following Chinese regulators’ order for Meta to unwind its acquisition of the company. The move would return Manus to domestic backers, with Tencent holding a minority stake to avoid a single investor gaining full control, according to people familiar with the matter.
Manus, which develops AI agents capable of completing multi-step tasks with minimal human intervention, has been at the center of China’s rapidly evolving AI sector. The buyback plan involves Tencent working with earlier investors such as ZhenFund and HSG (formerly Sequoia Capital China) to repurchase the startup from Meta for no less than $2 billion. The final structure remains fluid, with new investors potentially joining and some earlier backers like Benchmark likely opting out.
China’s Regulatory Blockade
Meta announced its intention to acquire Manus in December 2024 as part of its push into agentic AI, valuing the startup at over $2 billion. However, Beijing opened a national security review in April and subsequently ordered Meta to unwind the transaction, citing the company’s Chinese roots and its role in AI development. Although Manus had relocated its operations from China to Singapore in 2025, regulators treated it as part of China’s AI ecosystem, reflecting tighter oversight of cross-border technology deals involving entities with Chinese origins.
Following the order, Meta separated its operations from Manus and ceased data sharing, paving the way for earlier investors to consider buying the company back.
Manus’s Rise and Financial Performance
Manus gained prominence last year after releasing what it called “the world’s first general AI agent.” Chinese state media and tech commentators often compared the company to DeepSeek, another AI darling that captured widespread attention. The startup’s AI agents are designed to handle complex, multi-step tasks with limited supervision, a capability that has become a key battleground for major tech firms.
Financially, Manus’s revenue reportedly surged after the Meta deal. Chinese-language reports claim annualized revenue grew to between $400 million and $500 million, up from roughly $100 million before the acquisition. These figures have not been independently verified.
For Tencent, the potential stake strengthens its exposure to Chinese AI companies without taking full ownership. For Manus, the buyback shifts its shareholder base back toward domestic investors after a blocked sale to a U.S. technology giant.