SoftBank Group has made a significant move by agreeing to acquire the robotics business of Swiss engineering group ABB for $5.4 billion. This acquisition is part of SoftBank’s strategy to merge robotics and artificial intelligence (AI), an approach that Founder and CEO Masayoshi Son refers to as “Physical AI.” The deal announced on Wednesday highlights CEO Son’s commitment to positioning SoftBank as a key player in the advancement of artificial intelligence.
While SoftBank’s venture into humanoid robotics began a decade ago with the Pepper robot, recent investments in the sector include Berkshire Grey and AutoStore. The company has also led a $40 billion funding round in OpenAI, the creator of ChatGPT, and acquired chip design firm Ampere for $6.5 billion in March, according to Reuters. The acquisition of ABB’s robotics business signifies a shift from ABB’s original plan to spin off and separately list its industrial automation division, a move prompted by CEO Morten Wierod, who took the helm last year.
The robotics division of ABB, comprising 7,000 employees and accounting for $2.3 billion in sales last year, was operating somewhat independently within the company, focusing primarily on electrification and automation. ABB’s decision to sell its robotics business to SoftBank instead of spinning it off was driven by the immediate financial benefit the deal presented, as stated by Wierod. The transaction is projected to be finalized in mid- to late-2026, generating around $5.3 billion in cash proceeds for ABB.
Wierod indicated that the sale proceeds would be channeled towards developing new technology and production capacity in electrification and automation. Additionally, ABB might explore funding for new acquisitions, including larger deals, leveraging the financial flexibility resulting from the transaction. The acquisition of ABB’s robotics business marks a strategic move for SoftBank in strengthening its presence in the realm of artificial intelligence and robotics. Stay updated on the latest Business News, Corporate news, Breaking News Events, and Latest News Updates on Live Mint by downloading The Mint News App for daily market updates and premium stories.
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