SoftBank Acquires ABB Robotics for $5.4 Billion in Major Physical AI Push

Key Takeaways

Japanese tech investment giant SoftBank Group announced Wednesday it has agreed to purchase the robotics division of Swiss-Swedish engineering firm ABB for $5.375 billion, marking a significant expansion of its artificial intelligence ambitions into the physical realm.

The acquisition, which remains subject to regulatory approvals in the European Union, China, and the United States, is expected to close in mid-to-late 2026.

The deal represents a strategic shift for ABB, which had previously planned to spin off the robotics business as a separately listed company.

Merging robotics with artificial super intelligence

Masayoshi Son, Chairman and CEO of SoftBank Group, described the acquisition as a pivotal moment for the company's technological evolution.

"SoftBank's next frontier is Physical AI," Son said in a statement. "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."

Physical AI differs from conventional digital AI by enabling machines such as robots to operate in real-world environments rather than purely virtual spaces.

The technology represents a growing frontier in artificial intelligence development, with applications spanning industrial automation, manufacturing, and beyond.

ABB CEO Morten Wierod acknowledged the strategic fit between the two companies. "SoftBank will be an excellent new home for the business and its employees," Wierod stated. "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."

ABB robotics: A global industrial leader

ABB Robotics specializes in industrial robots, including large robotic arms capable of precise movements in factory settings for tasks such as picking, cleaning, and painting.

The division employs approximately 7,000 people worldwide and generated revenues of $2.3 billion in 2024, accounting for about 7% of ABB Group's total revenues. The business maintained an operational EBITA margin of 12.1% in 2024.

Peter Voser, Chairman of ABB, explained the rationale behind accepting SoftBank's offer. "SoftBank's offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off," Voser said. "It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders."

ABB expects to receive cash proceeds of approximately $5.3 billion from the transaction, which it plans to use in line with its established capital allocation principles.

The company estimates separation costs of around $200 million as it carves out the robotics business into a newly established holding company.

SoftBank's expanding AI ecosystem

The acquisition fits into SoftBank's broader strategy focused on four key areas: robotics, AI chips, AI data centers, and energy.

Following the deal's completion, the robotics platform will be integrated with SoftBank's existing robotics-related investments, including SoftBank Robotics Group, Berkshire Grey, AutoStore Holdings, Agile Robots, and Skild AI.

This isn't SoftBank's first venture into robotics. In 2012, the company took a majority stake in French company Aldebaran, and two years later launched a humanoid robot called Pepper.

While that initiative ultimately failed, SoftBank has now re-emerged with renewed focus on the robotics sector, bolstered by advances in artificial intelligence technology.

SoftBank, a major investor in OpenAI, the creator of ChatGPT, has also pledged to invest at least $100 billion in the Stargate project to build AI infrastructure in the United States.

Additionally, the company recently announced a $2 billion investment for a 2% stake in Intel, making it one of the chipmaker's largest shareholders.

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