Tencent Moves to Buy Majority Stake in Manus AI — A New Chapter in the US-China AI Arms Race
Tencent is moving to acquire a majority stake in Manus AI after Beijing forced Meta to unwind its $2 billion
The summer of 2026 is shaping up to be one of the most dramatic periods in AI industry history. After Beijing blocked Meta's $2 billion deal to acquire Manus AI, Chinese technology giant Tencent is stepping in to buy a majority stake in the AI startup — at the same $2 billion valuation. This is not just a business transaction; it is a new chapter in the global AI arms race.
How the Meta Deal Unraveled
In April 2026, the Chinese government unexpectedly blocked Meta's $2 billion acquisition of Manus AI, calling it a violation of investment rules and a "conspiratorial" attempt to undermine China's technology base. The government even imposed an exit ban on founder Xiao Hong, preventing him from leaving the country. The decision fits into a broader AI arms race between the two countries, where AI technology is already being compared to "cyber-nuclear weapons."
Tencent Steps In
Now, according to the Financial Times, Tencent is moving to buy a majority stake in Manus AI. Most earlier investors including Tencent itself, ZhenFund, and HSG, plus the management team, are discussing a deal at the same $2 billion valuation. U.S. firm Benchmark is not expected to take part. Manus will keep operating independently out of Singapore and most recently reported annual revenue of close to $500 million.
Tencent sees overlap with its own AI agent strategy, including plans to embed an AI agent into WeChat — China's dominant messaging platform with over a billion users.
What This Means for Georgian Business
This geopolitical AI race is reshaping global technology markets. For Georgian startups and IT companies, the fragmentation between US and Chinese AI ecosystems creates both risks and opportunities. As the technology landscape divides, new markets and partnerships emerge. Georgian companies should watch these developments and prepare for a world where choosing an AI ecosystem may become a strategic decision.