AI startup Manus is set to resume operating as an independent company after its proposed deal with Meta began to unravel amid increasing regulatory scrutiny of Chinese artificial intelligence companies.
The company announced on August 11 that it would return to independent operations and that some user-generated data would be deleted as part of its separation from the US technology giant.
Manus said data generated by certain users on or after December 29, 2025, will be deleted later this month to comply with regulatory requirements in specific jurisdictions.
Affected users will be notified through the Manus app and by email. The company said they will also have an opportunity to back up their data before the deletion takes place.
Credits: Reuters
Why Is Manus Separating From Meta?
The data deletion is directly linked to Manus’ separation from Meta.
In April, Chinese authorities ordered Meta to unwind its proposed acquisition of Manus, which was reportedly valued at more than $2 billion. The decision came as China increased scrutiny of foreign investment in domestic startups developing advanced technologies.
The situation reflects the growing geopolitical tensions surrounding artificial intelligence. Chinese AI startups have increasingly attracted interest from major US technology companies, but deals involving advanced AI technology face greater regulatory attention.
For Manus, the unwinding of the Meta deal means the company must now chart an independent path.
Manus Faces a New Future
Manus became one of the most closely watched AI startups after gaining attention for its AI agent technology.
Unlike traditional chatbots that primarily respond to individual prompts, AI agents are designed to complete more complex tasks with greater autonomy. This has helped Manus attract interest from users and investors looking for the next stage of AI development.
The startup’s return to independent operations could allow it to pursue new partnerships and investment opportunities without being directly tied to Meta.
However, operating independently could also present challenges. Building advanced AI systems requires significant computing resources, engineering talent and capital, making strategic investment particularly important for startups competing against much larger technology companies.
Tencent Reportedly Eyes Bigger Stake
Manus may already have another potential backer waiting in the wings.
In July, Reuters reported that Chinese gaming and internet giant Tencent was in talks to become Manus’ largest shareholder.
If completed, such an investment could provide Manus with additional financial and technological resources as it returns to independent operations.
Tencent is one of China’s largest technology companies, with businesses spanning gaming, social media, cloud computing and artificial intelligence. A major investment could therefore give Manus access to a powerful ecosystem as it attempts to continue growing.
The discussions also underline the interest surrounding Manus despite the collapse of its proposed Meta deal.
Data and Regulation Take Center Stage
The decision to delete certain user data highlights another increasingly important issue in the global AI industry: data governance.
As AI companies operate across multiple jurisdictions, they must navigate different rules concerning data storage, privacy, technology transfers and national security.
Manus said the deletion is necessary to comply with regulatory requirements in specific jurisdictions. Users affected by the change will receive notifications and have the opportunity to preserve their information.
For AI startups, regulatory compliance is becoming just as important as developing powerful models and products.
Credits: Bloomberg
What Comes Next for Manus?
Manus now enters a new chapter at a time when competition in artificial intelligence is accelerating rapidly.
The company will need to balance product development, regulatory requirements and the search for long-term investment while remaining competitive in the increasingly crowded AI agent market.
The potential involvement of Tencent could provide an important financial boost, but the company has yet to publicly confirm that it will become Manus’ largest shareholder.
For now, Manus’ return to independence marks a significant reversal from its proposed acquisition by Meta. The startup’s next moves could offer a glimpse into how Chinese AI companies navigate growing domestic regulation and intense competition for global technology investment.