Meta has begun dismantling its $2 billion acquisition of Manus, completing an operational separation from the Chinese-founded AI startup and halting data sharing between the two companies. This is the most concrete step yet toward complying with a divestiture order Beijing issued roughly two months ago on national security grounds.

Meta has cut Manus off from its internal systems, Bloomberg reported, preventing employees from using Manus tools for internal projects as the two companies move toward a full separation.

Meanwhile, according to May reports, the co-founders of Manus have held preliminary discussions about raising approximately $1 billion from outside investors to reclaim the startup from Meta, a move that could pave the way for a Chinese joint venture structure and an eventual listing in Hong Kong, a venue that has seen a surge in AI listings this year for Chinese AI startups like MiniMax and Zhipu.

What was supposed to be a landmark exit for Chinese AI is quickly unraveling. The move underscores Beijing’s determination to retain control over strategically sensitive technology, regardless of a company’s offshore incorporation.

In addition to the forced divestiture, Chinese authorities have since expanded travel restrictions to researchers and executives at private firms, requiring government approval before heading abroad. China is also tightening its grip on foreign capital, with reports indicating that top AI firms, including Moonshot AI, StepFun, and ByteDance, will need government sign-off before accepting U.S. investment, adding another layer to Beijing’s sweeping effort to control its AI sector.

Even as Meta moves to sever ties with Manus, the agentic AI startup has continued to ship new features, rolling out integrations with Similarweb and Shopify.

Manus drew widespread attention with a viral agent demo relocated its staff to Singapore in mid-2025 before announcing a $2 billion acquisition by Meta in December. Chinese regulators moved to scrutinize the transaction earlier this year, citing potential violations of technology export controls and foreign investment rules.

Manus investors, including California-based venture firm Benchmark, have already received their proceeds from the acquisition, while Asian backers, including Tencent, HSG, and ZhenFund, have indicated they will cooperate with the unwinding process, according to the WSJ.

Manus’ Chinese origins with parent company Butterfly Effect drew scrutiny on both sides of the Pacific, with Senator John Cornyn questioning whether American capital should flow to a Chinese-linked firm.

Meta and Manus did not immediately respond to a request for comment outside regular business hours.

The Labour Party, LP, has reacted to its inclusion in the list of candidates for the Enugu North senatorial by-election by the Independent National Electoral Commission, INEC.

INEC has rectified the previous omission of the party and its candidate from the list of participants in the upcoming Enugu North Senatorial District by-election, which is set for June 20, 2026.

The party, in a statement signed by its National Publicity Secretary, Ken Eluna Asogwa, said it was important to note that when the Commission first released the list of political parties and candidates authorized to take part in the by-elections nationwide, the Labour Party and its candidate were notably missing.

The omission happened despite the party having fully adhered to all constitutional and statutory obligations.

However, the party said that after discussions with the Commission’s leadership, the oversight has now been corrected, and the Labour Party along with its candidate have been duly included in the election.

“Consequently, the Party is entirely prepared to engage in the by-election and provide the residents of Enugu North with credible and people-focused representation for the remainder of the 10th Senate,” the statement said.

“By ensuring that the appropriate actions were taken, the Commission has shown its responsiveness and strengthened public trust in the electoral process.”

The party also expressed gratitude to its supporters, members, and well-wishers who expressed concern and inquired about the Party’s status in the upcoming election. Your vigilance, dedication, and steadfast belief in the Party are truly invaluable.

“As the campaigns move into their final stages, the Labour Party wishes success to its candidates in Enugu North, Nasarawa North, Rivers South-East, and all its candidates participating in the various by-elections across the nation,” it stated.

“We remain hopeful that the outcomes will not only be favourable to our Party but will also deepen Nigeria’s democratic culture and strengthen the people’s faith in the electoral process.”