Key Takeaways

• "I'm legitimately sad that this has now happened," one CEO said, while switching platforms.
• Meanwhile, China's reviewing the deal for potential export violations.
• I would assume it is expected to eventually," Yeh told CNBC.

Key Development 1

NewsTechnology NewsTech NewsSorry Mark Zuckerberg, customers of the company with Chinese roots you spent $2 billion on are not happy; say: Are sad that…TrendingNYT Connections HintsWordleSridhar VembuQuote Of The Day By Tim CookDeepinder GoyalJeff BezosSatya NadellaPalantir Ceo Alex KarpBill GatesMark ZuckerbergNYT Connections HintsWordleSridhar VembuQuote Of The Day By Tim CookDeepinder GoyalJeff BezosSatya NadellaPalantir Ceo Alex KarpBill GatesMark ZuckerbergNYT Connections HintsWordleSridhar VembuQuote Of The Day By Tim CookDeepinder GoyalJeff BezosSatya NadellaPalantir Ceo Alex KarpBill GatesMark ZuckerbergSorry Mark Zuckerberg, customers of the company with Chinese roots you spent $2 billion on are not happy; say: Are sad that…TOI Tech Desk / TIMESOFINDIA.COM / Jan 22, 2026, 09:09 ISTCommentsShareAA+Text SizeSmallMediumLarge Meta's $2 billion Manus acquisition is already losing customers who don't trust the social media giant with their data.

"I'm legitimately sad that this has now happened," one CEO said, while switching platforms.

He's now moving to alternatives like Genspark, where there's more certainty about the future.Meta's enterprise trust problem gets exposedMeta made public the Manus deal in late December, promising to scale the AI agent service to "many more businesses." Manus, which launched its first general-purpose AI agent last year, can handle complex tasks like market research, coding, and data analysis.

Meanwhile, China's reviewing the deal for potential export violations.

Key Development 2

Instead of celebrating the deal, some existing customers are jumping ship, citing deep-seated concerns about Meta's data practices, as per a CNBC report.Seth Dobrin, co-founder and CEO of Arya Labs, told CNBC that Manus was his favorite AI platform—but he's ditching it now that Meta owns it.

I would assume it is expected to eventually," Yeh told CNBC.

The exodus points to a bigger issue: Meta simply doesn't have the enterprise credibility that OpenAI, Google, and Anthropic have built.

Manus started life in China in 2022 before relocating to Singapore—a move Beijing apparently sees as a potential blueprint for other Chinese startups looking to dodge domestic oversight.Meta has now tried to distance itself, stating there is expected to be "no continuing Chinese ownership interests in Manus AI" and that services in China is expected to shut down.

Key Development 3

"Will the data policies of Meta apply to Manus?

Meta's $2 billion acquisition of Manus, a Singapore-based AI startup with Chinese roots, has now backfired in an unexpected way.

For a company spending $100 billion on AI this year, alienating users before day one isn't ideal.

TOI Tech Desk’s news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe.

Key Development 4

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"I do not agree with a lot of Meta's practices around data and how they essentially weaponize people's personal data against them," Dobrin said.

The startup claimed it had reached millions of paying customers and hit a revenue run rate exceeding $125 million.Despite Meta's promises that Manus would keep operating independently from Singapore, customers aren't buying it.

Key Development 5

China's commerce ministry is now reviewing whether the acquisition violates technology export controls, as per the Financial Times.

When you're known for ad-driven social media, convincing businesses you'll handle their sensitive data responsibly is an uphill battle.China wants answers about the $2 billion dealThe plot thickens beyond customer complaints.

But between regulatory scrutiny from Beijing and customers heading for the exits, Zuckerberg's $2 billion bet is already hitting turbulence.For a company that's pledged to spend $100 billion on AI this year, losing customers before the ink on the deal is dry isn't exactly the start Meta was hoping for.About the AuthorTOI Tech DeskThe TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India.

"I'm legitimately sad that this has now happened."Karl Yeh, co-founder of consulting firm 0260.AI, echoed similar concerns.

Key Development 6

His company stopped using Manus and advised clients to do the same.

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