The founders of Chinese AI Agent startup Manus are exploring a rare reverse move: raising roughly $1 billion to buy back the company from Meta. Per Bloomberg, three co-founders—Xiao Hong, Ji Yichao, and Zhang Tao—are in early-stage discussions with external investors to fund the repurchase at a valuation of at least $2 billion, aiming to unwind Meta's acquisition that China's top economic regulator forced to cancel in April.
Tech Team Relocated to Singapore, Investors Cashed Out
In July 2025, about 40 core Manus staff moved to Singapore under a local entity called Butterfly Effect to complete the acquisition structure. Chinese social media accounts were shut and IP addresses from mainland China blocked. The regulator later labeled the move “going overseas via a detour,” and the National Development and Reform Commission (NDRC) formally prohibited the deal, demanding both parties reverse the transaction. The regulator's central concern: how Manus transferred core team, R&D capability, training data, and IP out of China.
Most of the transaction is already complete. Manus employees are now working at Meta's Singapore office, and technology has been deeply integrated into Meta's systems. Early investors including Tencent, Sequoia Capital China, and ZhenFund have received their exit proceeds. The founders themselves face a dilemma: Xiao and Ji were told not to leave the country after being summoned by the NDRC in March, while most of the team is in Singapore.
Buyback Still Preliminary, Tech Separation Faces High Hurdles
Sources caution that the buyback and split plan remains very preliminary. Valuation and terms could change, and the three founders may ultimately decide to give up. Disentangling the technology from Meta's stack is likely even harder than integrating it in the first place. If the buyback succeeds, the plan is to set up a joint venture in China and pursue a Hong Kong IPO—effectively putting the already-relocated tech capabilities back under a Chinese regulatory framework.