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SoftBank Group has struck a landmark $5.4 billion deal to acquire the robotics division of Swiss engineering giant ABB, marking its most ambitious move yet to merge robotics with artificial intelligence in what founder Masayoshi Son calls the age of "Physical AI."
The acquisition, announced Wednesday, cements SoftBank's position at the forefront of the AI revolution. Son said the deal will "unite world-class technology and talent" to push toward Artificial Super Intelligence, his vision of machines that are 10,000 times smarter than humans. The Japanese conglomerate, which already owns chip designer Arm and holds major stakes in OpenAI and AutoStore Holdings, has made clear its intent to dominate the intersection of robotics and AI-driven automation.
The transaction, expected to close in mid-to-late 2026 pending global regulatory approval, means ABB will no longer pursue its planned spin-off of the robotics business as a separately listed company. ABB CEO Morten Wierod, who took the helm in 2024, said the sale "creates immediate value for shareholders," with the firm expecting $5.3 billion in cash proceeds after an estimated $200 million in separation costs.
SoftBank's acquisition comes as ABB's robotics unit, employing roughly 7,000 people, struggles with volatility in demand. The division generated $2.3 billion in revenue last year, about 7% of ABB's total, but faced limited crossover with its core electrification and automation segments. ABB shares rose 2% in Zurich after the sale announcement.
Son's renewed robotics push marks a striking comeback. Over a decade ago, SoftBank launched its humanoid robot Pepper, a project that fizzled, but robotics has since re-emerged as a key strategic pillar. Recent SoftBank deals include a $6.5 billion purchase of chipmaker Ampere and a $40 billion investment round in OpenAI, underscoring the company's appetite for AI-driven innovation.
