Tencent is in talks to become the largest shareholder in Manus after Beijing ordered Meta’s acquisition of the Chinese artificial intelligence startup to be reversed, according to people familiar with the negotiations.
Representatives of Tencent, venture backer ZHenFund, HSG and Manus’ management are discussing a transaction that would unwind Meta’s purchase while preserving the deal’s $2 billion valuation, these people said. The conversations are ongoing and could expand to include additional investors, though some former backers are expected to sit out the transaction.
Sources told reporters that U.S. venture capital firm Benchmark, which previously backed Manus, is unlikely to take part in the current talks. Despite Tencent’s anticipated emergence as the single largest investor in the proposed arrangement, it would remain a minority shareholder rather than a controlling owner.
Manus rose to prominence in early-2025 after launching its namesake AI agent, a system reported to carry out complex tasks autonomously. That profile helped attract Meta, which completed an acquisition of the company in December and initially integrated Manus into its operations.
In April, however, Chinese authorities ordered the reversal of Meta’s purchase, part of a broader move in Beijing to maintain domestic control over leading artificial intelligence firms. Reports earlier this week indicated regulators were also considering measures that could restrict foreign access to advanced Chinese AI models.
Following the regulatory reversal, Meta has separated Manus’ operations from its own business. Separately, the Facebook owner unveiled a new AI model, Muse Spark 1.1, on Thursday, describing it as its strongest model yet for agentic tasks and coding work. The timing of that release came as discussions continue over Manus’ ownership.
Sectors impacted - Technology, AI development, venture capital and cross-border investment flows.