The early backers of artificial intelligence start-up Manus are preparing to buy the company back from Meta, the parent of Facebook, for the $2 billion originally paid, according to reports. The move follows an order from the Chinese government in April for Meta to unwind the acquisition. The buyback effort is being led by some of Manus's earliest investors, including HSG, ZhenFund and Tencent, with other early Manus investors also participating. HSG and ZhenFund are considering using fresh capital to fund their portion of the repurchase, the reports said.
The development marks a dramatic turn for one of the most closely watched AI deals in recent years. Manus, founded in China and based in Singapore, became a target of global technology giants as demand for generative AI tools exploded. Meta acquired the start-up in December, but the transaction quickly became entangled in rising geopolitical tensions between Washington and Beijing. The Chinese government's order to unwind the deal forced Meta to begin separating its operations from Manus, a process that has now been completed, according to media reports. Meta has also halted data-sharing with the start-up.
Since the original December deal, Manus has grown significantly. Its annualised revenue run rate has increased from $100 million at the time of the acquisition to between $400 million and $500 million currently. That rapid growth has made the company more valuable and more attractive to its early backers, who now see an opportunity to re-acquire it at the original price. The buyback would return Manus to a group of investors that helped finance its early expansion and believed in its potential before the global AI boom reached its current intensity.
HSG, ZhenFund and Tencent are among the most prominent names in Chinese venture capital and technology. Their participation underscores the strategic importance of Manus and the broader AI sector. Tencent, in particular, has been expanding its AI capabilities and investing heavily in start-ups that can complement its existing ecosystem. For HSG and ZhenFund, backing Manus again would signal confidence in the company's long-term prospects, even as regulatory and geopolitical risks remain.
Early investor Benchmark is reportedly not participating in the buyback. The decision by Benchmark, a well-known Silicon Valley venture capital firm, could reflect the complexities of investing in a company caught between two major economies. It may also indicate that some investors prefer to focus on other opportunities rather than navigate the cross-border challenges that a Manus buyback would entail.
Manus is considering changing its structure to become a joint venture incorporated in China, according to reports. Such a move could pave the way for a Hong Kong market listing. Hong Kong has become an increasingly popular destination for Chinese AI start-ups seeking public capital. In recent months, companies including Zhipu and MiniMax have found success with Hong Kong listings, demonstrating investor appetite for AI businesses with strong growth stories. A Hong Kong listing would give Manus access to a broad pool of Asian investors and could help it raise additional capital for expansion while keeping its operations closer to its Chinese roots.
The potential re-acquisition and structural change come as Meta continues to reshape its own AI strategy. Meta had reportedly been planning to use Manus-like technology in an internal initiative to use AI to replace human workers. The initiative aimed to deploy AI agents that could perform tasks traditionally handled by employees, a sign of how aggressively Meta has been pursuing automation. Emily Dalton Smith, a key executive involved with applying the Manus-like technology to
Source: Silicon UK News