Tencent is negotiating to buy a majority stake in Manus, an artificial intelligence agent startup, following Beijing’s order for Meta to unwind its $2 billion acquisition. The Chinese regulator blocked Meta’s deal in April, citing violations of investment rules and labelling the transaction an attempt to undermine local technology. Officials also imposed an exit ban on founder Xiao Hong. Tencent now sees an opportunity to embed its own agent directly into WeChat, aligning with its broader strategy for autonomous software tools. Discussions suggest the valuation remains near the original $2 billion figure, with earlier investors like ZhenFund and HSG likely to participate alongside the management team. The company operates independently from Singapore and reported annual revenue of close to $500 million in its most recent financial update. Benchmark is not expected to join this round of investment.
This shift highlights how geopolitical friction is reshaping capital flows in the artificial intelligence sector. Beijing’s intervention demonstrates a willingness to restrict foreign ownership in strategic technology firms while domestic giants seek to consolidate control. The situation reflects a wider competition between nations where advanced AI capabilities are treated with the same gravity as traditional military assets. Specific outcomes depend on how quickly these parties finalise terms under current regulatory pressure.
* Manus reported annual revenue of close to $500 million
* Founder Xiao Hong faces an exit ban from China
* Benchmark is not expected to participate in the deal
