Tencent is in talks to become the largest shareholder of Singapore-based AI startup Manus, stepping in after Beijing ordered Meta to unwind its $2 billion acquisition of the company, according to multiple people with knowledge of the matter 478.
The Financial Times first reported Tencent's talks on July 10, 2026 78. Reuters subsequently confirmed the discussions, citing two people with knowledge of the matter 46.
Tencent, together with Manus's original investors ZhenFund and HSG, plans to buy the company back from Meta for no less than $2 billion — the same price Meta paid when it acquired the startup in December 2025 347. HSG is the investment firm formerly known as Sequoia Capital China 3.
Meta had purchased Manus in December 2025 to strengthen its agentic AI capabilities 3. Chinese regulators blocked the deal in April, citing technology export concerns 3. Beijing's intervention forced Meta to reverse the acquisition, creating the opening for Tencent and the original investors to negotiate a buyback 378.
Tencent, Manus, Meta, and the two investment firms did not immediately respond to Reuters' requests for comment 478.
The case highlights intensifying U.S.-China tensions over AI technology and Beijing's expanding scrutiny of cross-border tech financing 3. One headline characterized Beijing's posture as treating agentic AI as a "sovereign asset" 2.
[ANALYSIS] The proposed buyback at the same $2 billion valuation Meta originally paid would represent a lateral transfer of control rather than a markdown — an outcome that preserves Manus's financial standing while satisfying Beijing's regulatory demands.
If completed, the transaction would keep Manus under Chinese-backed ownership while allowing Meta to exit a politically sensitive investment 3. The deal would position Tencent as the dominant shareholder of one of the most closely watched agentic AI startups linked to China's AI ecosystem 35.