Chinese technology giant Tencent is in discussions to become the largest shareholder of AI startup Manus, as investors explore alternative ownership options after Beijing reportedly directed Meta to unwind its proposed $2 billion acquisition of the company, according to two people familiar with the matter.
Tencent, along with Manus’ existing investors—including ZhenFund and HSG—is considering a buyback of the startup from Meta at a valuation of no less than $2 billion, one of the sources and another person briefed on the discussions said.
The reported move comes amid heightened regulatory scrutiny over foreign acquisitions of Chinese AI companies, prompting investors to reassess the startup’s ownership structure.
Tencent, Manus, Meta, ZhenFund, and HSG did not immediately respond.
If the discussions culminate in a deal, Tencent would significantly strengthen its position in China’s rapidly evolving artificial intelligence ecosystem while ensuring Manus remains under domestic ownership. The potential transaction also highlights the growing influence of regulatory oversight in shaping cross-border AI investments, as geopolitical and national security considerations increasingly determine the future of high-value technology deals.
