Manus co-founders are exploring a $1 billion fundraising effort to buy back their AI company from Meta Platforms, responding to Beijing's demand to unwind the controversial takeover. The three founders—Xiao Hong, Ji Yichao, and Zhang Tao—are in talks with investors to raise capital at a valuation matching Meta's original $2 billion purchase price.

The potential deal would establish Manus as a Chinese joint venture before pursuing a Hong Kong IPO, according to sources familiar with the private discussions. Founders may also contribute personal funds to complete the transaction, which would effectively reverse one of Meta's most significant AI acquisitions in China.

This development reflects growing geopolitical tensions around AI technology transfers and Chinese regulatory pressure on foreign tech acquisitions. Meta paid approximately $2 billion for the agentic AI outfit, making this one of the company's largest AI investments in recent years. The unwinding could signal shifting dynamics in US-China tech relations.

The buyback attempt demonstrates how geopolitical concerns are reshaping tech M&A strategies in the AI sector. For Meta, divesting Manus represents a strategic retreat from Chinese AI markets amid tightening regulations.