SoftBank's $5.4 Billion Robotics Acquisition: A Bold Move into 'Physical AI'

SoftBank bulks up its robotics portfolio with ABB Group's robotics unit | TechCrunch

Japanese investing conglomerate SoftBank Group is buying a robotics company as the financial behemoth says physical AI is its next frontier. SoftBank announced on Wednesday that it has acquired Zurich, Switzerland-based ABB Group's robotics business unit for $5.375 billion. The deal is subject to regulatory approval; SoftBank predicts the deal will close in mid-to-late 2026 according to a press release. Sami Atiya, the head of the division, will exit the company once the acquisition is complete, per ABB Group. ABB's robotics business employs roughly 7,000 people and sells a variety of robots and equipment, designed for tasks like picking, cleaning and painting. The company made $2.3 billion in revenue in 2024, representing 7% of ABB's overall revenue. ABB announced plans to spin out its robotics group in April. SoftBank said it hopes to be able to "reignite" sales at ABB's robotics spinoff. The organization's 2024 revenue was only $2.3 billion, down from $2.5 billion the previous year. SoftBank has been building up its investments and holdings in robotics over the last few years. The entity has invested in companies including more legacy players like AutoStore and startups including Skild AI and Agile Robots. The firm also launched its own robotics platform, SoftBank Robotics Group, in 2014. "SoftBank's next frontier is physical AI," Masayoshi Son, the chairman and CEO of SoftBank said in the company's press release. "Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward." Robotics is one of four focus areas for SoftBank, together with AI chips, AI data centers and energy. "The center of the 'Information Revolution' has evolved from personal computers, the internet, and broadband to smartphones, and has now entered a new phase led by artificial intelligence," SoftBank said in its press release. "In this context, [SoftBank Group] has declared its mission to realize artificial super intelligence (ASI) for the advancement of humanity." TechCrunch reached out to SoftBank for more information.

SoftBank makes a $5.4 billion bet on AI robots

Remember Pepper, the overhyped "emotional robot" that flopped hard a few years ago? Well, one of its makers, SoftBank, is getting back into the bot business with a $5.4 billion acquisition of ABB's robotics division. The deal, which still needs the green light from regulators, bolsters the Japanese group's hand in robotics, which includes stakes in companies like Skild, AutoStore Holdings, and Agile Robots. While SoftBank is no stranger to robotics, the field has become a new priority for the company. "SoftBank's next frontier is Physical AI," founder Masayoshi Son said, promising a "groundbreaking evolution that will propel humanity forward." Robots are one of four strategic areas SoftBank is investing heavily in to realize Son's vision of dominating the AI industry and developing super intelligent AI. It is also pouring money into chips, data centers, and energy, as well as companies at the "forefront of generative AI."

SoftBank to buy ABB's robotics unit in $5.4bn deal

SoftBank has agreed to buy ABB's robotics arm in a deal valuing the business at $5.4bn as part of the Japanese group's aggressive push into a sector it believes will be tied to the rise of artificial intelligence. The purchase is consistent with SoftBank chief Masayoshi Son's ambitions to build a complete AI infrastructure that includes robotics, data centres, energy and chipmaking. The billionaire founder has built a vast web of shareholdings and relationships with AI-related companies -- including OpenAI, Nvidia, Intel and Oracle -- and has described the technology as a "defining force shaping humanity's future". "SoftBank's next frontier is Physical AI," Son said in a statement on Wednesday. "Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward." SoftBank's share price has more than doubled in the year to date to more than ¥20,000 ($130) as investors pile into the Japanese group as a play on OpenAI and the ChatGPT maker's soaring valuation. A spokesperson for SoftBank said the "specific financing method has not yet been determined" and "we are considering a combination of asset-backed financing, sufficient cash position and debt financing" as the deal approaches its expected closure in mid- to late 2026. The newly acquired ABB unit will sit alongside other SoftBank robotics companies "to accelerate innovation in AI robotics and drive progress and growth towards the realisation" of artificial superintelligence that surpasses human intelligence. ABB's robotics business builds and programs robots that help factories and warehouses work more efficiently -- from large industrial arms to smaller collaborative robots that can work alongside people. It also provides the software, sensors and systems that make robots smart and adaptable. SoftBank added that it believed it was "well-positioned to reignite the robotics business's growth, particularly through investment in cutting-edge technologies such as AI". The Japanese group, and its tech-heavy investment funds, already own SoftBank Robotics, which develops humanoid and logistics robots; Berkshire Grey, a US company specialising in logistics and robotics; and specialist companies such as AutoStore, Agile Robots and Skild AI. Swiss-based ABB said its robotics division had a workforce of about 7,000 and made revenue of $2.3bn in 2024, roughly 7 per cent of the overall group's sales. ABB said it expected the deal to generate net cash proceeds of $5.3bn and that the acquisition meant it had given up its earlier intention to spin off the business as a listed company.

SoftBank to buy ABB's robotics business in $5.4 billion deal

ZURICH, Oct 8 (Reuters) - SoftBank Group (9984.T), opens new tab said on Wednesday it has agreed to buy the robotics business of Swiss engineering group ABB (ABBN.S), opens new tab in a $5.4 billion deal. The deal marks a major push by SoftBank founder and CEO Masayoshi Son into robotics as he expands investing activity after a period of retrenchment. SoftBank, whose forays into robotics include the humanoid Pepper, has investments in the segment including in Berkshire Grey and AutoStore. The deal means ABB has abandoned its original decision to spin off and separately list the industrial automation business, which competes with Japan's Fanuc (6954.T), opens new tab and Yaskawa (6506.T), opens new tab, as well as Germany's Kuka in making factory robots. The decision is the first major move under ABB CEO Morten Wierod, who took charge last year, and comes after the robots business has struggled with falling profitability and sales in recent years. "ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank's robotics offering can best shape this era together," said Wierod in a statement. "ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing," he added. ABB shares were indicated 3% higher in pre-market activity in Zurich after the sale announcement. SoftBank's shares rose around 1% in afternoon trading following the announcement but were still down 1.57% compared to Tuesday's close. Its shares have surged on a wave of enthusiasm for companies considered beneficiaries of artificial intelligence, more than tripling in the previous six months to hit a record intra-day high of 21,695 yen on Tuesday. The transaction is expected to close in mid-to-late 2026 and generate cash proceeds of roughly $5.3 billion from the divestment, ABB said. It said the money will be used towards its long-term capital allocation principles, which include investing in organic growth, acquisitions and returning capital to shareholders through dividends and share buybacks. The robotics business, which employs 7,000 people, generated sales of $2.3 billion last year, equivalent to 7% of ABB's total revenues, but ABB saw limited crossover with the rest of its business, which is largely focused on electrification and automation. Robotics has struggled with subdued demand in Asia, with companies delaying capital investments due to economic uncertainty. New installations remained largely unchanged at 542,000 units in 2024, according to the International Federation of Robotics. Reporting by John Revill; Additional reporting by Sam Nussey in Tokyo; Editing by Miranda Murray and Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab

SoftBank to buy ABB robotics unit for $5.4 billion as it boosts its AI play

Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp., speaks during the company's annual general meeting in Tokyo, Japan, on Friday, June 27, 2025. SoftBank Group on Monday said it had agreed to buy the robotics division of Swiss engineering firm ABB for $5.4 billion, as the Japanese giant looks to bolster its artificial intelligence plays. The deal, which is subject to regulatory approval globally, means ABB will no longer look to spin off its robotics business as a separately listed company. "SoftBank's next frontier is Physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward," Masayoshi Son, founder of SoftBank, said in a statement. Artificial Super Intelligence, or ASI, is Son's idea of AI that is 10,000 times smarter than humans.

AI boom: SoftBank to buy ABB's robotics business for $5.4 billion

The acquisition brings together SoftBank's AI know-how and ABB's robotics expertise as companies race to stay ahead of tech advances. Japan's SoftBank Group has agreed to acquire the robotics branch of Swiss engineering company ABB for $5.37 billion (€4.62bn) as it pushes ahead with physical AI. Unlike digital AI, which works in the virtual realm, physical AI allows machines such as robots to operate in real-world environments. The acquisition is part of a broader strategy held by the Japanese multinational investment firm, headquartered in Tokyo, which is actively investing in AI chips, AI robots, AI data centres, and energy. The current acquisition, approved by the firm's board, is still subject to regulatory approvals, although SoftBank expects the deal to close in the second half of 2026. "SoftBank's next frontier is Physical AI," said Masayoshi Son, CEO of SoftBank. "Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward." ABB CEO Morten Wierod added: "ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing." For Zurich-based ABB, the deal means it will not pursue its earlier intention to spin off its robotics business as a separately listed company. Peter Voser, chairman of ABB, said: "SoftBank's offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off. It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders." ABB's robotic branch has approximately 7,000 employees. The ABB Robotics division reported revenues of $2.3bn (€1.98bn) in 2024, which represented about 7% of ABB Group revenues, and had an operational EBITA margin of 12.1%. ABB will carve out its robotics business into a newly established holding company, and the expected separation cost is around $200 million (€172mn). Shares in the Swiss firm were up by more than 1.4% in the morning in Europe. SoftBank's share price closed 2% lower after the Asian trading session on Tuesday, before the announcement was made.

SoftBank to acquire ABB robotics unit in multi-billion dollar deal

Reportedly, the acquisition will empower both organisations in 'a new era of AI-based robotics'. Japanese multinational investment company SoftBank Group Corp has announced plans to acquire the robotics division of Swedish-Swiss electrical and engineering platform ABB, in a deal estimated to be roughly $5.4bn. ABB had originally announced now abandoned plans to spin-off the business into a separately listed entity. In signing the new agreement, ABB will amend its reporting structure and during the fourth quarter of 2025, the robotics unit will be listed as discontinued operations. The machine automation division, which together with ABB Robotics currently forms the robotics and discrete automation business area, will become a part of the process automation business area. Commenting on the news, ABB CEO Morten Wierod said, "SoftBank will be an excellent new home for the business and its employees. ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank's robotics offering can best shape this era together." He added, "ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing. This will allow the business to strengthen and expand its position as a technology leader in its field." Masayoshi Son, the chair and CEO of SoftBank Group Corp also said: "SoftBank's next frontier is physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse artificial super intelligence and robotics, driving a groundbreaking evolution that will propel humanity forward." Subject to regulatory approvals and further standard closing conditions, the deal is expected to be finalised in mid-to-late 2026. In August, SoftBank Group continued its investment in the wider global market, as it announced a $2bn investment into troubled chipmaker Intel. SoftBank agreed upon a deal where it will pay $23 per share of Intel common stock in the $2bn transaction. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

ABB to sell robots business to SoftBank in $5.38 billion deal - The Economic Times

SoftBank Group is acquiring ABB's robotics business for $5.4 billion, marking a significant expansion into robotics for SoftBank founder Masayoshi Son. This deal sees ABB abandon its spin-off plans for the division, which has faced profitability challenges. The transaction is expected to close in mid-to-late 2026.SoftBank Group has agreed to buy the robotics business of Swiss engineering group ABB in a $5.4 billion deal, as the Japanese investor forges ahead with a strategy to fuse robotics and artificial intelligence. The acquisition, announced on Wednesday, is the latest by founder and CEO Masayoshi Son to establish Softbank as a core player in the development of artificial intelligence. SoftBank pushed into humanoid robotics a decade ago with its Pepper robot but later scaled back its ambitions. Its recent investments in the sector include Berkshire Grey and AutoStore, and it also led a $40 billion funding round in ChatGPT-maker OpenAI and in March bought chip design company Ampere for $6.5 billion. SoftBank's strategy: Merging AI with robotics "SoftBank's next frontier is Physical AI," Son said in a statement. The deal means ABB has abandoned its original decision to spin off and separately list the industrial automation business, which competes with Japan's Fanuc and Yaskawa, as well as Germany's Kuka in making factory robots. The decision is the first major move under ABB CEO Morten Wierod, who took charge last year, and follows years of struggling sales and falling profitability for the robots business. ABB's robotics division, which employs 7,000 people, generated sales of $2.3 billion last year, equivalent to 7% of ABB's total revenues. But the company saw limited crossover with the rest of its business, which focuses primarily on electrification and automation. ABB announced to shareholders in April its decision to spin off robotics but decided to sell instead because the SoftBank deal provided money immediately, Wierod told Reuters. Following the deal's announcement, Switzerland's Zuercher Kantonalbank said it had expected a valuation of slightly less than $4 billion for the robotics business under the planned spin-off. ABB shares opened 2% higher in Zurich after the sale announcement, while SoftBank's shares did not move significantly, ending the day down 2%. ABB to focus on electrification, automation, acquisitions "We always said that robotics is a market with much higher volatility. And that's what we've seen over the years, both when it comes to growth, but also margins," Wierod said. "So it is a bit of a different market than, say, the rest of ABB today, which is focusing on electrification and automation." The transaction is expected to close in mid- to late-2026 and will generate cash proceeds of roughly $5.3 billion, ABB said. The money will be spent on developing new technology and production capacity in electrification and automation, and could also fund new acquisitions, Wierod said. "We do have firepower to also do bigger acquisitions, so we're not excluding bigger deals," Wierod said.

Softbank Takes Over ABB Robotics In A $5.4 Billion Deal To Bolster AI Portfolio - ARM Holdings (NASDAQ:ARM), ABB (OTC:ABBNY)

SoftBank Group (OTC:SFTBY) (OTC:SFTBF) said on Wednesday it will buy the robotics division of Swiss engineering firm ABB (OTC:ABBNY) in a $5.4 billion deal, as the Japanese firm looks to boost its artificial intelligence portfolio. ABB Robotics Poised To Boost SoftBank's AI Vision "SoftBank's next frontier is Physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward," CEO Masayoshi Son said. The deal means ABB will no longer pursue plans to spin off its robotics division into a separate publicly listed company. The transaction is expected to close in mid-to-late 2026 and generate cash proceeds of roughly $5.3 billion from the divestment, ABB said in a statement. The expected separation costs related to the deal are around $200 million, about half of which has already been baked into the 2025 outlook, the company added. See Also: Mark Cuban Says 'It's F-Ed Up Neither Party Wants Healthcare' -- Criticizes Dems For Backing Insurers & Republicans For 'Rage Farming About Illegals' SoftBank Doubles Down On AI And Robotics Son has sought to beef up the group's AI plays through investments and acquisitions in different areas of technology. SoftBank owns chip designer Arm (NASDAQ:ARM) and has a major stake in ChatGPT owner OpenAI. In September, SoftBank, along with OpenAI and Oracle Corp (NYSE:ORCL), announced a $500 billion Stargate project to power the next wave of AI. The company also announced a partnership with Intel Corp (NASDAQ:INTC) in June to launch a $70 million AI memory project in Japan to address energy challenges in the data center market. The group is not new to robotics either. In 2012, SoftBank acquired a majority stake in French company Aldebaran and launched the humanoid robot Pepper in 2014 -- a venture that failed, though robotics has since become a major focus for the company. It also has investments in robotics-related firms like AutoStore Holdings and Agile Robots. READ NEXT: Youibot's Hong Kong IPO Filing Aligns With China's Robotics Drive Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. ABBNYABB Ltd$73.09-%OverviewARMARM Holdings PLC$160.000.41%INTCIntel Corp$37.15-0.05%ORCLOracle Corp$285.500.44%SFTBFSoftBank Group Corp$107.63-21.7%SFTBYSoftBank Group Corp$68.78-%Market News and Data brought to you by Benzinga APIs

SoftBank to buy ABB's robotics arm in $5.4 billion deal

SoftBank Group agreed to acquire ABB's industrial robots unit at an enterprise value of almost $5.4 billion, reflecting billionaire Masayoshi Son's growing bets on artificial intelligence and a global wave of data center construction. The Japanese investment firm agreed to take over a business with more than 7,000 employees, which supplies industrial arms and robots to manufacturers including BMW. Swiss conglomerate ABB -- which originally aimed to spin off the unit -- will instead focus on more profitable areas such as electrification, which is also surging as the likes of OpenAI and Meta Platforms spend trillions on data centers. ABB had said in April that it planned to create a separately listed entity for the robotics business in 2026. It was one of the first major strategic moves by Chief Executive Officer Morten Wierod, who took the helm in August last year.

SoftBank to Acquire ABB's Robotics Business Amid Growing AI-Related Investments | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Subject to customary closing conditions, SoftBank expects the acquisition to close in mid- to late-2026, the company said in a Wednesday (Oct. 8) press release. The acquisition is part of SoftBank's growing business in four areas related to AI, including AI chips, AI robots, AI data centers and energy, according to the release. SoftBank expects that after the acquisition, ABB's robotics business will be complemented by SoftBank's existing investments in the field, including SoftBank Robotics Group, Berkshire Grey, AutoStore Holdings, Agile Robots and Skild AI, the release said. ABB's robotics business is a globally recognized brand with extensive sales channels and customer relationships, and SoftBank's investment in cutting-edge technologies can "reignite the robotics business's growth," per the release. "SoftBank's next frontier is physical AI," SoftBank Group Chairman and CEO Masayoshi Son said in the release. "Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse artificial super intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward." In its own press release about the acquisition, ABB said it had planned to spin off its robotics business as a separately listed company because there are limited synergies between that business and ABB's other businesses, which include electrification and automation. After evaluating SoftBank's offer, ABB determined that the offer reflects the long-term strengths of the business and creates immediate value for ABB shareholders, according to the release. "SoftBank will be an excellent new home for the business and its employees," ABB CEO Morten Wierod said in the release. "ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank's robotics offering can best shape this era together." It was reported in May that ABB was exploring a spinoff or sale of its robotics business as the company shifts its focus to more profitable areas, such as the electrification business that has benefited from the rise of new data centers being built to meet AI demand. SoftBank announced in August that it is making a $2 billion investment into chipmaker Intel as part of a commitment to investing in advanced technology and semiconductor innovation in the United States.

SoftBank Expands AI Footprint With $5.38 Billion Deal to Buy ABB's Robotics Unit -- Update

Japan's SoftBank Group agreed to purchase ABB's robotic business in a deal that values it at $5.38 billion, furthering the investment company's push into the business of artificial intelligence. SoftBank said Wednesday that the acquisition of the division, whose valuation includes debt, would significantly strengthen its AI robotics operations. Softbank has made other recent investments in AI, including tens of billions of dollars in ChatGPT-maker OpenAI. At the start of this year, Softbank Chairman Masayoshi Son stood alongside President Trump and OpenAI chief Sam Altman to announce a new data-center joint venture, Stargate. In March, Softbank announced the purchase of Ampere Computing, which designs AI chips. In addition to data centers, SoftBank aims to invest and expand in AI robots, chips and energy, the group said Wednesday. The sale marks a change of plan for ABB, which had been putting together a potential spinoff of the business and eyed a listing in the second quarter of next year. With limited synergies between robotics and the company's other divisions, and with different demand and market characteristics, ABB said a carve-out would boost value. "SoftBank's offer has been carefully evaluated by the board and executive committee and compared with our original intention for a spin-off," ABB Chairman Peter Voser said. "It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders." The timing and value of the deal are good news for ABB, analysts at RBC Capital Markets wrote. "This swift sale ends all discussion and uncertainty around the exit and ABB obtained a good price." Shares in ABB rose following the news, gaining 1.8% to 59.50 Swiss francs in opening trade in Europe. As a result of the agreement, ABB's head of robotics and discrete automation and executive committee member Sami Atiya will leave ABB by the end of 2026. The SoftBank deal is subject to regulatory approvals and further customary closing conditions and is expected to close in mid-to-late 2026. Write to Dominic Chopping at [email protected] and to Joshua Kirby at [email protected]; @joshualeokirby