SoftBank Acquires ABB's Robotics Unit for $5.4 Billion, Betting Big on 'Physical AI'

Reviewed byNidhi Govil

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SoftBank Group has agreed to purchase ABB's robotics division for $5.4 billion, marking a significant move into the robotics and AI sector. This acquisition aligns with SoftBank's vision of dominating the AI industry and developing super intelligent AI.

SoftBank's Bold Move into Robotics and AI

Japanese tech giant SoftBank Group has made a significant leap into the world of robotics and artificial intelligence with its latest acquisition. The company announced on Wednesday, October 8, 2025, that it has agreed to purchase ABB Group's robotics business unit for $5.375 billion

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. This move aligns with SoftBank's vision of dominating the AI industry and developing super intelligent AI

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Source: Analytics Insight

Source: Analytics Insight

The Deal and Its Implications

The acquisition, which is subject to regulatory approval, is expected to close in mid-to-late 2026 [1](https://techcrunch.com/2025/10/08/softbank-bulks-up-its-robotics-portfolio-with-abb-groups-robotic s-unit/). ABB's robotics division, which employs around 7,000 people, generated revenue of $2.3 billion in 2024, representing 7% of ABB's overall revenue

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. The deal marks a departure from ABB's original plan to spin off the unit as an independently listed company

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SoftBank's Vision for 'Physical AI'

Masayoshi Son, the chairman and CEO of SoftBank, emphasized that the company's next frontier is 'Physical AI'

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. This acquisition is part of SoftBank's broader strategy to build a complete AI infrastructure, which includes robotics, data centers, energy, and chipmaking

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. Son envisions uniting world-class technology and talent to fuse Artificial Super Intelligence (ASI) and robotics, driving what he calls a "groundbreaking evolution that will propel humanity forward"

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Source: CNBC

Source: CNBC

SoftBank's Growing Robotics Portfolio

This acquisition adds to SoftBank's already substantial investments in the robotics sector. The company has stakes in various robotics companies, including AutoStore, Skild AI, Agile Robots, and Berkshire Grey

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. SoftBank also launched its own robotics platform, SoftBank Robotics Group, in 2014

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Source: The Register

Source: The Register

Market Reaction and Future Prospects

The announcement of the deal has been well-received by investors. SoftBank's share price jumped as much as 13 percent following the news, while ABB's stock edged higher in Zurich

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. SoftBank's stock has more than doubled in the year to date, as investors view the company as a play on the soaring valuations of AI companies like OpenAI

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Challenges and Opportunities

While the acquisition presents significant opportunities for SoftBank, it also comes with challenges. The robotics industry has faced subdued demand in Asia, with companies delaying capital investments due to economic uncertainty

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. However, SoftBank believes it is well-positioned to reignite the robotics business's growth, particularly through investment in cutting-edge technologies such as AI

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