China's most viral AI stars are stuck. The government has banned the two Manus founders Xiao Hong and Ji Yichao from leaving the country after Meta acquired the startup for an estimated $2 to 2.5 billion.
China increasingly views the sale of AI elite technology to US giants as a threat to national security.
The ten-day deal
The numbers behind the acquisition are breathtakingly fast:
In April 2025, Manus was still worth $500 million, Benchmark Capital led the Series A of $75 million.
Eight months later, Meta closed the acquisition, negotiated in just ten days. For early investors Tencent and HongShan Capital (formerly Sequoia China): a 4x return.
Manus had already reached $100 million in annual revenue by then, faster than any startup before.
Operation "Singapore-washing"
Manus was founded in China in 2022 (Beijing Butterfly Effect Technology), but relocated headquarters and team to Singapore in 2025 – shortly after a funding round from US VC Benchmark Capital.
The strategy is called "Singapore-washing" in the industry: Chinese founders, Chinese technology, but a Singapore mailbox address.
The NDRC charges:
FDI violations: Manus allegedly failed to properly report ownership changes and Singapore relocation
User data risks: Potential endangerment of Chinese user data
"Selling young crops": Beijing fears other startups will follow this model
The extreme scenario: unwind the deal
An "insider" to the FT: "One extreme outcome would be to unwind the transaction." Problem: Meta has already integrated Manus AI agent software into its platform.
"The transaction complied fully with applicable law. We anticipate an appropriate resolution." Meta's statement
All Details & Data: Wall Street Journal, Yahoo Finance
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