Meta has completed an operational separation from Manus, cutting the agentic AI startup off from its systems and halting all data sharing as both companies work to unwind a $2 billion deal Beijing ordered reversed. Last week, Meta barred Manus staff from accessing its internal data systems and told its own employees to stop using Manus tools for internal projects. The separation follows Beijing's April order to reverse the acquisition, which law firm Zhonglun described as unprecedented under China's foreign investment security review mechanism. The startup, built by parent company Butterfly Effect, moved its headquarters and core teams to Singapore in mid-2025, with Meta announcing its $2 billion acquisition in December. Beijing issued new outbound investment rules earlier this month that take effect July 1, extending Beijing's reach to markets including Taiwan and giving it power to punish foreign firms from countries that restrict Chinese investment. Manus co-founders are in early discussions to raise roughly $1 billion from outside investors to buy the company back from Meta, according to May reports, a path that could lead to a Chinese joint venture structure and a Hong Kong listing.