SoftBank Group announced on Monday its acquisition of the robotics division of ABB, a Swiss engineering firm, for $5.4 billion, aiming to strengthen its presence in artificial intelligence. This strategic move by the Japanese conglomerate, pending regulatory approval worldwide, signifies ABB’s decision to no longer pursue the spin-off of its robotics business as a separate entity.
Masayoshi Son, the founder of SoftBank, highlighted the collaboration with ABB Robotics as a step towards advancing Physical AI, which merges Artificial Super Intelligence and robotics. Son envisions ASI as AI that surpasses human intelligence by 10,000 times. SoftBank’s extensive involvement in various technology sectors, such as owning Arm and holding a significant stake in OpenAI, demonstrates its commitment to positioning itself in the realm of AI.
SoftBank’s recent acquisition is not its first foray into robotics, having previously invested in companies like AutoStore Holdings and Agile Robots. The company’s earlier venture with a French firm, Aldebaran, resulted in the creation of the humanoid robot Pepper. Despite initial setbacks, SoftBank is focusing anew on robotics as a pivotal area of interest.
Morten Wierod, ABB’s CEO since August 2024, had advocated for the spin-off of the robotics unit as part of the company’s strategic realignment. ABB foresees the sale as adding immediate value for its shareholders and intends to utilize the proceeds in alignment with its established capital allocation strategy. The estimated cash influx from the transaction is around $5.3 billion, with an anticipated separation cost of approximately $200 million.
As SoftBank and ABB embark on this partnership, they are set to leverage their combined expertise and resources to drive innovation in the field of robotics and artificial intelligence, heralding a new chapter in technological advancements.
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