Global Market | Tencent Investigates Investment in AI Startup Manus Following China’s Objections to Meta Agreement: Reports

Last updated on July 10, 2026July 10, 2026 by Liam Pullman on Categories Business, Artificial Intelligence

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Tencent Eyes Majority Stake in AI Startup Manus Amid Regulatory Turmoil

Chinese tech powerhouse Tencent is reportedly engaged in negotiations to acquire a majority share in the artificial intelligence enterprise Manus.

This development emerges as investors seek alternatives following a government mandate requiring Meta to divest its $2 billion purchase of Manus, as per sources familiar with the situation, according to Reuters.

Tencent is deliberating on a deal alongside Manus’ original investors, namely ZhenFund and HSG, aimed at repurchasing the AI startup from Meta in a transaction that is expected to be valued at no less than $2 billion.

Emergence of a Buyback Strategy

The proposed arrangement would enable Tencent to assume the role of Manus’ predominant shareholder, with existing stakeholders ZhenFund and HSG also participating in the potential buyback.

These discussions underscore a concerted effort by investors to reorganize the ownership of the AI firm following extensive regulatory scrutiny that thwarted Meta’s acquisition plans.

Regulatory Scrutiny on Cross-Border Transactions

Meta declared its intent to acquire Manus in December as part of a broader initiative to enhance its capabilities in agentic AI.

This particular field focuses on AI systems capable of executing complex tasks with minimal human intervention. However, by April, China initiated a review of the deal, expressing concerns regarding adherence to investment regulations.

According to Reuters, the decision mandating Meta to reverse the transaction signifies yet another instance of Beijing challenging cross-border acquisitions involving entities with Chinese affiliations, particularly amid escalating geopolitical tensions with the United States.

Following regulatory actions, Bloomberg News revealed last month that Meta had taken steps to separate its operations from Manus internally and had ceased data sharing between the two companies.

Manus’ Ascendancy in the AI Arena

Modern office with people collaborating, digital screens displaying data, city skyline visible through large windows, and manus and Meta logos.

In a strategic shift, Manus relocated its operations from China to Singapore last year while persistently developing AI agents engineered to autonomously carry out tasks with limited human oversight.

The company garnered considerable attention early last year for unveiling what it termed the world’s first general AI agent. This milestone incited comparisons by state media and industry experts, likening Manus to DeepSeek and positioning it among China’s most promising AI ventures.

Source link: M.economictimes.com.

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Liam Pullman

I'm Liam, a Senior Business Associate and Content Manager at RSWEBSOLS. I hold an MBA and have over a decade of experience in the online business space, including blogging, eCommerce, career growth, and business strategies, sharing practical insights to help businesses and professionals grow online.