Tencent is in negotiations to acquire AI startup Manus from Meta, becoming its largest shareholder in a deal worth at least $2 billion, after Beijing requested Meta to unwind its previous acquisition. This deal would significantly strengthen Tencent's position in the AI agent space, while marking a setback for Meta's expansion in China. It reflects ongoing geopolitical tensions and strategic realignments in the AI industry. Tencent will partner with original investors ZhenFund and HSG to repurchase Manus from Meta at no less than $2 billion. The deal follows a Chinese government request for Meta to unwind its earlier $2 billion acquisition of Manus.
Background
Manus is an autonomous AI agent developed by Butterfly Effect, a company founded in China and based in Singapore. It is designed to independently execute complex real-world tasks such as research, automation, data processing, and code generation. Tencent is a major Chinese tech conglomerate expanding its AI portfolio, while Meta had previously acquired Manus but faced regulatory pushback.