Chinese Tech Giant Eyes Strategic Stake After Beijing Orders Meta to Unwind $2 Billion Acquisition.
Chinese technology company Tencent Holdings is in discussions to become the largest shareholder in artificial intelligence startup Manus, following Beijing’s decision to require Meta Platforms to reverse its planned $2 billion acquisition of the company. The proposed transaction would place Tencent at the center of one of China’s most closely watched AI investments as competition in the sector intensifies.
According to people familiar with the matter, Tencent is negotiating alongside Manus’ early investors, including ZhenFund and HSG, to repurchase the company from Meta at a valuation of at least $2 billion. If completed, Tencent would become Manus’ largest shareholder while allowing the AI startup to continue operating independently.
Beijing’s Intervention Reshapes the Deal
The negotiations follow a regulatory review by Chinese authorities, who ordered Meta to unwind its acquisition of Manus over concerns related to foreign ownership of strategically important AI technology.
The decision reflects China’s growing emphasis on maintaining domestic control over advanced artificial intelligence companies as global competition in the sector accelerates.
Manus Emerges as a Rising AI Player
Manus has gained significant attention for developing advanced AI agents capable of carrying out complex tasks with limited human input.
Originally founded in China before relocating its headquarters to Singapore, the startup has been widely viewed as one of the country’s most promising AI companies and has attracted strong interest from both domestic and international investors.
Tencent Expands Its AI Ambitions
A successful investment would strengthen Tencent’s growing presence in artificial intelligence.
The company has been investing heavily in AI research, cloud computing, and intelligent software, while integrating AI capabilities across products such as WeChat, enterprise services, and gaming platforms. Acquiring a major stake in Manus would further enhance Tencent’s position in the rapidly evolving AI ecosystem.
Meta Steps Back
Meta agreed to acquire Manus in late 2025 to strengthen its AI capabilities, but the transaction became increasingly difficult after Chinese regulators raised objections.
Reports indicate that Meta has already separated its operations from Manus and suspended data-sharing arrangements while discussions continue over fully unwinding the deal.
AI Competition Intensifies
The proposed ownership change highlights the growing strategic importance of artificial intelligence for major technology companies.
Governments and regulators are paying closer attention to cross-border AI investments, particularly where advanced technologies are considered critical to national competitiveness and security.
What Comes Next
The discussions remain ongoing, and no final agreement has been announced.
If the transaction proceeds, Tencent would become Manus’ largest shareholder while the startup continues to operate independently, potentially positioning itself for future expansion or a public listing as demand for AI technologies continues to grow.
