BEIJING – Meta Platforms has completed an operational split from Manus and halted data sharing between the two companies, taking a pivotal step toward unwinding a US$2 billion (S$2.6 billion) acquisition opposed by Beijing.

The owner of Facebook and Instagram has effectively erected a firewall between itself and the Chinese-founded agentic artificial intelligence service, people familiar with the matter said.

Meta has barred Manus and its staff from accessing the US company’s internal data systems since the start of June, the people said.

Meta employees, in turn, can no longer use Manus tools for internal projects, the people said, asking to remain anonymous to discuss private decisions. 

The ringfencing comes as Manus’ founders explore options to fulfill Beijing’s demand to undo the deal, including by raising about US$1 billion to fund a buyback.

Meta is “sunsetting” Manus, according to an internal memo viewed by Bloomberg News. Staff were told to migrate existing Manus projects onto Meta’s systems and not to start new work on the AI platform, the memo showed.

Together, the actions taken to separate the two operations mark another step toward eventually hiving off Manus, the people said. 

Once celebrated as a blueprint for Chinese AI startups keen to set foot on a global stage, Meta’s landmark acquisition of Manus quickly drew criticism for handing over key technology to a geopolitical rival, triggering a months-long probe involving tech export controls.

Chinese regulators in April demanded the deal be unwound, triggering the intricate process of dismantling a completed transaction.

Manus, once hailed as a breakthrough that would challenge Silicon Valley’s dominance, is turnin...