Summary of Key Points
Chinese AI startup Manus, which gained fame as the “world’s first autonomous AI Agent,” was acquired by Meta for $2 billion at the end of 2025. However, in April this year, the acquisition was halted due to China’s foreign investment security review requirements, forcing Manus to revert to independent operations. To comply with regulations and handle the data from the acquisition period, Manus will delete user data from December 29, 2025 (the day of the Meta acquisition), onward. Meanwhile, a “backup-delete-restore” process will be used to preserve users’ own data. Tencent, in conjunction with early investors, plans to repurchase Manus shares from Meta for the original price of RMB 13.6 billion. Manus will operate independently in Singapore, but it faces fierce competition in the global AI Agent market.
Detailed Analysis
1. Why did Manus have to part ways with Meta? – Regulatory constraints
Manus, a Chinese AI startup, achieved annual recurring revenue (ARR) of over $100 million just eight months after its launch in March 2025, which later increased to $400–500 million. Meta saw its potential and decided to acquire it for $2 billion. However, China’s foreign investment security review mechanism examines whether foreign acquisitions pose a threat to national security. In April this year, the National Development and Reform Commission deemed the Meta acquisition of Manus to be risky and ordered the transaction to be canceled—this was not a matter of choice for either Manus or Meta; it was a legal requirement that had to be followed.
2. Data deletion is not just a simple “data wipe”; it’s a “reset” after the transaction was halted
Why delete data from December 29, 2025, and later? On that day, Meta took control of Manus, and the data generated during this period needed to be separated from the independent Manus. Data is not just ordinary company property; it involves user rights and platform control. By using December 29 as a cut-off date, Manus is separating the data controlled by Meta, similar to dividing marital assets in a divorce. Since data is particularly sensitive, this method ensures compliance with regulatory requirements.
3. The “backup-delete-restore” process: balancing compliance and user retention
Directly deleting data would result in users losing their accumulated information (such as AI Agent training records and personalized settings), leading to customer loss. Manus has implemented a phased approach:
- Backup phase: Users can back up their data from August 11 to 8:59 PM Singapore time on August 23.
- Deletion phase: Data controlled by Meta will be deleted between August 23 and August 24.
- Restore phase: Backed-up data will be restored on August 25 at 8 AM.
This approach meets regulatory requirements while protecting user interests, as users are the core of the company.
4. The buyback attempt: Tencent aims to regain control; Manus faces significant challenges
After the Meta acquisition was halted, Tencent, along with early investors like Sequoia China and ZhenFund, plans to repurchase Manus shares for the original price. Although Tencent will hold the majority of shares, it will still be a minority shareholder. The founder of Manus also intends to raise an additional RMB 1 billion to buy back shares and plans to operate independently in Singapore, with the possibility of going public again. However, the AI Agent market is highly competitive: Meta has already launched its own AI Agent, and domestic giants like Tencent, Alibaba, and Zhipu also have similar products, eroding Manus’ initial advantage. Although Manus claims it will introduce new features, whether it can regain users depends on its actual capabilities.
5. What users should be concerned about?
For independent Manus, user data is stored in both the United States and Singapore. Users should pay attention to the following:
- Who will be responsible for handling my data? (Will there be a change in the team handling it?)
- Have the rules for data storage and cross-border transmission changed? (Is there any risk in transferring data from the US to Singapore?)
- Will the existing privacy policy be altered? (For example, will data be sold to third parties?)
These issues directly affect user security and experience, so users should wait for official announcements from Manus.
Conclusion
Manus’ separation from Meta was due to regulatory constraints. The data handling process is a balance between compliance and user data protection. The buyback attempt by Tencent aims to regain control of the company. However, to survive in a competitive market dominated by giants, Manus will need to rely on its product strength. For users, it’s crucial to monitor any changes in data-related policies.