Tencent is in talks to become the largest shareholder in AI startup Manus, as investors work on a buyback plan after Chinese regulators ordered Meta to unwind its $2 billion acquisition of the company, according to people familiar with the matter.
The talks put Manus back at the center of China’s fast-moving AI sector. The company builds AI agents that can complete tasks with limited human input, a field that has drawn strong interest from major technology firms.
Tencent is working with Manus’ earlier investors to buy the startup back from Meta for no less than $2 billion, according to people with knowledge of the talks. The investor group includes ZhenFund and HSG, formerly known as Sequoia Capital China.
Tencent is expected to become the largest single shareholder if the deal moves ahead. Still, the Chinese technology group would reportedly hold a minority stake, which would avoid giving one investor full control over the company.
Meanwhile, the final structure has not been completed. New investors may still join the group, while some earlier backers may not take part. Benchmark, a US venture firm that previously backed Manus, is not expected to join the buyback.
Tencent, Manus, Meta, ZhenFund and HSG did not immediately respond to requests for comment. The talks remain private, and the valuation may still change before any final agreement.
Meta announced plans to purchase Manus in December as part of its push into agentic AI. The deal valued the startup at more than $2 billion and gave Meta access to one of the better-known AI agent companies linked to China.
China opened a review in April to assess whether the deal broke investment rules. Regulators later ordered Meta to unwind the transaction, citing national security concerns tied to the company’s Chinese roots and its role in AI development.
Manus moved its operations from China to Singapore last year. Even so, Beijing treated the company as linked to China’s AI ecosystem, showing closer oversight of cross-border technology deals involving firms with Chinese origins.
After the order, Meta separated its operations from Manus and stopped data sharing between the companies, according to reports. This split cleared the way for earlier investors to consider buying the company back.
Manus gained attention last year after releasing what it described as ‘the world’s first general AI agent.’ Chinese state media and technology commentators compared the company to DeepSeek, another AI name that drew wide attention from China’s tech sector.
The company’s AI agents are designed to handle multi-step tasks with limited supervision. This capability has become a key focus for large technology firms, as companies race to build systems that can work across software, web tools and business tasks.
The startup’s revenue reportedly grew after Meta agreed to buy it. Chinese-language reports said Manus’ annualized revenue rose to between $400 million and $500 million, compared with around $100 million before the deal. Those figures have not been independently confirmed.
For Tencent, the potential stake would strengthen its exposure to Chinese AI companies without taking full ownership. For Manus, the buyback would shift its shareholder base back toward Chinese investors after a blocked sale to a US technology company.
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