Meta begins dismantling $2 billion Manus AI deal on Beijing's orders — sources

Two sources close to the deal told CNBC that the Cyberspace Administration of China advised domestic AI start-ups to "step back quickly" from foreign capital and that Manus leadership received the guidance the same week Meta was preparing investment paperwork. Manus, a Singapore-registered but Beijing-headquartered start-up, develops a communication protocol for autonomous AI agents.

Meta spokesperson Christopher Sgro said "we do not comment on speculation." Manus CEO Yichao Ji wrote on his WeChat account that "the company is in full compliance with the national regulatory framework." China's Commerce Ministry spokesperson He Yadong told a routine briefing that "safeguarding national technology sovereignty is our legal right."

Meta shares fell 1.8% on the Nasdaq to $615. Wedbush analyst Dan Ives wrote that "the geopolitical tech war is forcing US big tech to reassess China-based portfolio investments." Microsoft, Alphabet and Apple's China joint ventures are also under scrutiny. Not investment advice.