SoftBank's Strategic Leap Into Physical AI with ABB Robotics Acquisition

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SoftBank Group is acquiring ABB's robotics division for $5.375 billion, marking a major step toward its vision of Physical AI—merging artificial intelligence with robotics to drive innovation. The deal, expected to close in mid-to-late 2026, bolsters SoftBank’s AI and robotics portfolio and advances CEO Masayoshi Son’s pursuit of artificial superintelligence.

SoftBank Group, under the leadership of CEO Masayoshi Son, has made a bold strategic move toward what it calls "Physical AI"—the integration of artificial intelligence with real-world robotics—by agreeing to acquire ABB Ltd.’s robotics division for $5.375 billion. This acquisition marks a significant step in Son’s vision to advance artificial superintelligence (ASI) within the next decade.

Announced on October 8, 2025, the deal shifts ABB’s previous plan to spin off its robotics unit as an independent entity, opting instead to deliver immediate cash proceeds to ABB shareholders. The robotics division, which employs roughly 7,000 people, generated $2.3 billion in revenue in 2024, accounting for 7% of ABB's total sales, with an operational EBITA margin of 12.1%. ABB expects to gain about $2.4 billion pre-tax from the transaction. The deal is subject to regulatory approvals across key markets, including the EU, China, and the US, with closing anticipated by mid-to-late 2026.

For SoftBank, this acquisition aligns with an aggressive AI investment strategy that includes a $40 billion commitment to OpenAI, ownership of chip designer Arm Holdings, and the $6.5 billion purchase of Ampere Computing earlier this year. Moreover, SoftBank is contributing at least $100 billion to the US government's Stargate project aimed at building AI infrastructure nationwide.

Integrating ABB's established robotics platform complements SoftBank's existing robotics investments, such as SoftBank Robotics Group, Berkshire Grey, AutoStore Holdings, Agile Robots, and Skild AI. This fusion is designed to accelerate innovation in automation and AI-driven robotics, propelling the development of Artificial Super Intelligence that CEO Son envisions as transformative for humanity.

ABB Chairman Peter Voser emphasized that SoftBank's offer reflects the division’s long-term strengths and will generate immediate value for ABB shareholders, underscoring a new phase for both companies.

Overall, this deal heralds a pivotal expansion in the convergence of AI and robotics, potentially reshaping industries through enhanced automation, efficiency, and intelligence. SoftBank’s commitment to Physical AI exemplifies the growing importance of integrating advanced AI technologies with tangible, physical applications in the real world.