Manus Restarts Independent Operations, Yet Avoids Starting Anew

10/19 2026 453




The most daunting aspect of Manus's split from Meta doesn't revolve around equity.

On August 11, AI firm Manus declared its return to independent operations. As per the official announcement, in line with the split from Meta and pertinent regulatory mandates, data generated by certain users on or after the day Meta acquired Manus will be erased.

Image Source: Manus Official Website

Over the past year, Manus initially rose to prominence with its AI Agent product crafted by a Chinese team. Subsequently, it shifted its headquarters and business focus to Singapore, only to be later acquired by U.S. tech behemoth Meta. In April this year, Chinese regulatory bodies demanded the undoing of this deal, and now, the split between the two entities has reached the stage of user data management.

During this span, Manus has witnessed several alterations in its corporate entity, headquarters, and control, leading to a more intricate corporate identity. Manus's resumption of independent operations has once again thrust its complex corporate identity and prior cross-border dealings into the spotlight.

01 Manus's Identity

Strictly speaking, Manus wasn't initially a company name but rather an AI Agent product.

In 2022, Xiao Hong, a post-90s entrepreneur who graduated from Huazhong University of Science and Technology, established Butterfly Effect. In March 2025, the company unveiled the AI Agent Manus. As the product gained traction, "Manus" gradually became the widely recognized term for the company and its team. From the vantage point of the founding team and R&D origins, Manus boasts a distinct Chinese heritage.

Image Source: Manus Official YouTube Channel

However, from a legal and operational standpoint, Manus cannot be simply pigeonholed as a "Chinese company." According to Semafor, Butterfly Effect's parent company is registered in the Cayman Islands, with staff dispersed across China, Singapore, Japan, and the United States. The Cayman structure is primarily utilized for equity holding and cross-border financing, with actual business operations not centered in the Cayman Islands. Hence, defining its true national affiliation based solely on its registration location is challenging.

The substantive transformation in Manus's identity transpired with its move to Singapore in 2025. In July 2025, Manus shuttered its Chinese office, laid off some staff, and relocated its headquarters and main operations to Singapore. By the time of Meta's acquisition at year-end, foreign media had already labeled it as an AI company "founded in China but headquartered in Singapore."

Therefore, if one must pinpoint "which country's company Manus is," a more precise description would be: It's an AI company founded by Chinese entrepreneurs, with its technology and team hailing from China, but with its headquarters and main operational framework later shifted to Singapore.

It's noteworthy that Manus's relocation to Singapore may not merely be a statement of identity. According to Reuters, the founding team believed that with shifts in overseas business and financing landscapes, the move to Singapore was vital for the company's survival and global expansion. Manus's move isn't an isolated incident: Since 2024, Link-da, a Singaporean corporate service provider, has aided roughly 50 Chinese AI-related firms in setting up operations in Singapore.

02 The Company Moved, Yet Controversies Lingered

Early controversies surrounding Manus primarily centered on its product and technology.

When Manus debuted in March 2025, it adopted an invitation-only testing model. As the product swiftly gained popularity, invitation codes became highly sought after, with some fetching thousands of dollars or even more on secondhand platforms, leading to accusations of "hunger marketing" against Manus.

Simultaneously, Manus didn't develop its own foundational large model but instead constructed its Agent product atop models like Anthropic Claude and Alibaba's Qwen, sparking another debate: Is it an AI technology firm or an AI application company that develops products?

Image Source: Manus Official YouTube Channel

It's clear that Manus has been challenging to categorize as a specific type of AI company since its inception, and Benchmark's $75 million investment further extended this ambiguity from its technical identity to its corporate identity.

In May 2025, the U.S. Treasury Department launched an inquiry into this investment, requesting Benchmark to clarify whether it fell under U.S. foreign investment regulations. Benchmark's legal advisors contended that since Manus's parent company was registered overseas and didn't train foundational models, it shouldn't be subject to relevant restrictions.

Subsequently, Manus shuttered its Chinese office and relocated to Singapore, further amplifying this identity contradiction amid public controversy. Meta's acquisition turned this controversy into a regulatory issue.

On December 29, 2025, Manus announced its joining of Meta, with its company headquarters and main operations remaining in Singapore. Reports indicated that the transaction size surpassed $2 billion. On April 27, 2026, this acquisition was mandated to be undone.

Image Source: Manus Official Website

At that juncture, Manus's headquarters and main operations had already been transferred to Singapore, but this acquisition still underwent relevant review procedures. Meanwhile, public documents didn't further elucidate Manus's identity determination, while related reports and legal analyses mentioned that factors such as technology, personnel, data, and intellectual property rights could all be implicated in cross-border transaction reviews.

03 Splitting from Meta Isn't Straightforward

August 11 merely signifies the official announcement of Manus's "resumption of independence," but this split actually commenced in April.

After the transaction was mandated to be undone in April 2026, the most immediate issue was how to manage Meta's equity stake in Manus. In May, reports surfaced that Manus's founding team was contemplating raising external funds to buy back the company from Meta. Subsequently, original investors like HSG, ZhenFund, and Tencent were also reported to be involved in repurchase discussions, with Tencent even being reported to be negotiating to become Manus's largest shareholder. However, as of now, the final equity structure of Manus post-resumption of independence hasn't been disclosed.

In June, reports indicated that Meta had internally completed the operational split from Manus and halted data sharing between the two entities.

On August 11, Manus further announced data management arrangements for users. Data generated by certain users on or after December 29, 2025, will be deleted between August 23 and 24. Affected users can back up their data in advance and resume services from August 25. Manus stated that this arrangement is part of its separation from Meta and resumption of independent operations.

Besides equity and operational ties, the undoing of this completed transaction may also entail technology and data management. Some lawyers pointed out that the reversal may involve matters such as funds, code, data, intellectual property rights, and personnel, and that the information and technological interactions that have already transpired are difficult to reverse.

Hence, Manus's "resumption of independence" this time encompasses at least three layers of changes: In terms of equity, Meta exits; operationally, the two sides are separated again; and in terms of data, the connections forged during the acquisition period must also be reprocessed. However, this doesn't imply that Manus has reverted to being a "Chinese company." Its global business and Singaporean framework haven't automatically vanished due to this split.

Thus, the question of which country's company Manus is has now garnered a clearer response: From a legal and operational standpoint, it can be a Singaporean company; from the perspective of its entrepreneurial and R&D history, it has a distinct Chinese origin. Both answers can coexist.

Currently, Manus has declared that it will resume operations as an independent entity and continue to serve global users. The company stated that after resuming independence, user data will still be stored in the United States and Singapore. As for the company's final equity structure and subsequent governance arrangements, further disclosures are pending.

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