Manus' three co-founders are considering a financing strategy to reverse Meta's purchase of the artificial intelligence startup after Chinese authorities directed that the acquisition be unwound.
Founders Xiao Hong, Ji Yichao and Zhang Tao are said to be in talks about securing approximately $1 billion from external backers to effectively repurchase the business at a valuation that would mirror the amount Meta paid when it acquired the Singapore-based firm, according to people familiar with the discussions. The founders are also prepared to contribute personal capital to close any shortfall between investor commitments and the target amount.
Planned structure and potential path forward
If executed, the financing could transform Manus into a joint venture involving the founding team and new investors. Those involved have contemplated an eventual initial public offering in Hong Kong as part of a longer-term exit strategy, contingent on how the buyback and ownership reconfiguration proceed.
Regulatory backdrop
Meta announced the acquisition in late December as part of its efforts to broaden advanced AI capabilities across its platforms. Following the announcement, Chinese authorities initiated a review of the deal to assess whether it complied with domestic investment rules. The review resulted in an order for Meta, a California-based company, to unwind the purchase. In addition, two Manus co-founders have been barred from leaving China amid the regulatory process.
What Manus does
Manus develops general-purpose AI agents designed to perform tasks autonomously with limited human intervention. These agents are intended to operate as digital employees, carrying out activities such as research and automation.
Current communications
Requests for comment on the founders' deliberations were not immediately answered by Manus. The details about the contemplated financing, valuation target and possible joint-venture arrangement reflect ongoing discussions and plans under consideration by the founders and prospective backers.
The founders are weighing a path that would aim to restore control of Manus at a valuation aligned with Meta's prior purchase price, while navigating the regulatory constraints that have prompted the forced unwind.