Tencent Holdings is reportedly in advanced discussions to become the largest shareholder of AI startup Manus, as investors work to unwind Meta’s previously announced $2 billion acquisition after Chinese regulators ordered the deal to be reversed. If completed, the transaction would make Tencent the biggest shareholder in one of China’s fastest-growing AI startups while allowing Manus to remain an independent company focused on developing advanced AI agents. The discussions were first reported by the Financial Times and later confirmed by Reuters, citing people familiar with the matter.

The potential investment highlights China’s determination to keep strategically important AI companies under domestic influence while intensifying competition with U.S. technology giants in the global artificial intelligence race.

Tencent Eyes Largest Stake in Manus

According to the reports, Tencent is expected to become Manus’ largest shareholder, although it would still hold a minority stake rather than acquiring full control.

The proposed restructuring includes:

  • Tencent becoming the largest shareholder.
  • Existing investors supporting the restructuring.
  • Manus continuing to operate independently.
  • The deal being valued at approximately $2 billion, matching the valuation agreed during Meta’s proposed acquisition.
  • Potential participation from additional investors.
  • Former U.S.-based investors, including Benchmark, reportedly not participating in the new ownership structure.

The discussions remain ongoing, and the final ownership structure could change before any agreement is completed.

Why Meta’s Acquisition Was Reversed

Meta announced its acquisition of Manus in late 2025 as part of its push into autonomous AI agents.

However, Chinese authorities later ordered the transaction to be unwound, citing concerns related to:

  • Technology transfer.
  • National AI competitiveness.
  • Domestic control of strategic AI assets.
  • Compliance with Chinese investment regulations.

The reversal reflects Beijing’s increasing efforts to ensure that leading domestic AI technologies remain under Chinese influence amid intensifying global AI competition.

Why Manus Has Attracted Global Attention

Founded by Butterfly Effect, Manus gained widespread attention after launching one of the first highly autonomous AI agents capable of independently completing complex multi-step tasks.

Its platform can perform activities such as:

  • Software development.
  • Web research.
  • Data analysis.
  • Business workflow automation.
  • Document preparation.
  • Multi-step planning with limited human intervention.

The company’s rapid growth made it one of the most closely watched startups in the emerging AI agent market.

Strategic Importance for Tencent

For Tencent, increasing its stake in Manus would strengthen its expanding AI portfolio.

Potential strategic benefits include:

  • Accelerating AI agent development.
  • Enhancing AI capabilities across WeChat and Tencent Cloud.
  • Expanding enterprise AI offerings.
  • Strengthening China’s domestic AI ecosystem.
  • Reducing dependence on foreign AI technologies.
  • Competing more effectively with global AI leaders.

Tencent has been investing aggressively in generative AI, cloud computing, and foundation models as competition intensifies across China’s technology sector.

China’s AI Race Intensifies

The proposed investment reflects a broader trend of Chinese technology companies increasing investments in frontier AI.

Major areas of focus include:

  • Autonomous AI agents.
  • Foundation models.
  • Enterprise AI platforms.
  • AI infrastructure.
  • Robotics.
  • Multimodal AI systems.

Chinese companies are accelerating AI investments as they compete with OpenAI, Google, Anthropic, Meta, and other global AI leaders.

What Investors Will Watch

Market participants will closely monitor:

  • Final ownership structure.
  • Regulatory approvals.
  • Tencent’s investment size.
  • Manus’ future fundraising plans.
  • Commercial expansion of AI agent products.
  • Potential public listing opportunities.

These developments could shape the competitive landscape for AI startups in both China and global markets.

Outlook

Tencent’s reported talks to become the largest shareholder of Manus underscore the strategic importance of AI agents in the next phase of artificial intelligence development. Following the collapse of Meta’s proposed acquisition due to regulatory intervention, the new structure would allow Manus to remain independent while receiving backing from one of China’s largest technology companies.

If the deal proceeds, it would reinforce Tencent’s position in the AI race and highlight China’s broader strategy of retaining domestic control over high-value AI companies. As AI agents become a key battleground for the technology industry, Manus is expected to remain one of the most closely watched startups in the global AI ecosystem.

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