Meta is reportedly dismantling and “unwinding” its $2 billion acquisition of the Chinese-founded AI startup Manus after receiving a directive from Chinese regulators. Multiple outlets report that Meta has begun taking operational steps to reverse the deal, rather than simply pausing further activity. These steps include stopping data sharing between Meta and Manus, blocking Manus personnel from accessing Meta internal data systems, and preventing staff from using the Manus platform. The reporting characterizes the move as part of Beijing’s broader regulatory scrutiny of technology and overseas investment, particularly in areas involving advanced AI capabilities and heightened U.S.–China competition. While the outlets describe the directive as unprecedented, they do not provide additional specifics on the regulatory reasons or the final legal or commercial outcome of the acquisition. The coverage indicates Meta’s actions are intended to comply with the deadline and instruction from Chinese authorities to hand back the startup or undo the acquisition’s integration.