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Meta’s billion-dollar AI grab just ran into Beijing.

Multiple outlets have reported that Chinese regulators have ordered Meta to unwind its $2.5 billion acquisition of Manus AI, a China-rooted startup known for building general-purpose AI agents capable of completing real-world tasks. The move raises immediate questions about how Meta can unwind a deal that has already closed.

What happens next could redraw the rules for cross-border AI deals.

Why the deal hit a wall

Manus was not just another AI startup with a flashy demo and a pile of investor cash.

The company became known for building autonomous AI agents, a buzzy category of software designed to handle complex, multi-step tasks such as coding, research, planning, and data analysis with less direct human hand-holding.…