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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe co-founders of AI firm Manus are reportedly seeking to raise $1 billion from external investors to buy back their operations from Meta. According to reports from Reuters and Bloomberg, this move is a direct response to demands from Beijing regulators to unwind the controversial acquisition deal. The founders intend to use the capital to regain full control of their AI technology and intellectual property.
This development occurs against a backdrop of escalating tech friction between Washington and Beijing, with Chinese authorities tightening oversight on AI assets held by U.S. giants. Per market data, peer technology stocks have shown mixed performance as regulatory risks cloud cross-border M&A. The pressure on Manus coincides with a broader economic slowdown in China, where industrial production grew by only 4.1% in May 2026, according to official market data.
Investors are closely monitoring Meta for any formal confirmation regarding the potential divestment terms, noting that Meta shares maintained steady levels as of the close on May 20, 2026. Looking ahead, the regional investment climate remains sensitive following China's retail sales data on May 18, 2026, which showed a marginal increase of 0.2%, potentially impacting the liquidity available for such a significant private funding round.