Meta is dismantling its US$2 billion acquisition of AI platform Manus after Chinese regulators blocked the deal over national security concerns. Beijing’s decision, made over three months ago, effectively halted the integration of the Chinese-founded startup into Meta's operations. Manus has informed users that data generated since the acquisition date of December 29 will be deleted as part of the unwinding process. This marks another significant instance of technological decoupling between the United States and China, particularly within the rapidly evolving field of artificial intelligence. The blocked acquisition underscores the increasing scrutiny faced by cross-border tech deals amid geopolitical tensions. This case highlights the challenges for US companies seeking to invest in, or acquire, Chinese AI technology firms. The move signifies a growing trend of nations protecting their AI sectors for strategic reasons.