SoftBank to Acquire ABB’s Robotics Business Amid Growing AI-Related Investments
News Summary
SoftBank Group plans to acquire ABB’s robotics business, with the acquisition expected to close in mid- to late-2026. This move is part of SoftBank’s expanding business in four AI-related areas: AI chips, AI robots, AI data centers, and energy. SoftBank believes the acquisition will complement its existing investments in the robotics field, which include SoftBank Robotics Group, Berkshire Grey, AutoStore Holdings, Agile Robots, and Skild AI. The company aims to leverage its cutting-edge technology investments to “reignite the robotics business’s growth” of ABB’s globally recognized brand. ABB had initially planned to spin off its robotics business due to limited synergies with its other electrification and automation segments. However, after evaluating SoftBank’s offer, ABB determined it reflects the business’s long-term strengths and creates immediate shareholder value. SoftBank Group Chairman and CEO Masayoshi Son declared that “SoftBank’s next frontier is physical AI,” aiming to fuse artificial super intelligence and robotics.
Background
Since May 2025, ABB has been exploring a spin-off or sale of its robotics business to focus on more profitable areas such as electrification and automation, which have benefited from the surge in new data centers being built to meet AI demand. SoftBank Group has been aggressively investing in the AI sector throughout 2025. The company announced a $2 billion investment in chipmaker Intel in August and committed $40 billion to OpenAI. Furthermore, SoftBank partnered with OpenAI and Oracle to invest an initial $100 billion, potentially up to $500 billion, in building AI infrastructure. This acquisition of ABB’s robotics business further underscores SoftBank’s ambition in what it terms “physical AI.”
In-Depth AI Insights
What is the true strategic intent behind SoftBank's acquisition of ABB's robotics business? - SoftBank's move goes beyond simple market share expansion; its core aim is to build a vertically integrated "physical AI" ecosystem. By combining ABB Robotics (hardware) with its investments in AI chips, data centers, and other robotics companies (e.g., Agile Robots, Skild AI), SoftBank seeks to achieve seamless AI integration from cloud to edge, and from software to hardware, establishing a formidable competitive moat. - This reflects SoftBank's deep understanding of AI's evolutionary path: future AI value will not solely reside in software and algorithms but increasingly in its ability to interact with the physical world. By controlling robotics hardware, SoftBank can better optimize AI models for real-world automation, logistics, and industrial production, providing practical applications for "artificial super intelligence" beyond the digital realm. What are the long-term strategic implications for ABB in divesting its robotics business? - ABB's divestiture of its robotics business represents a strategic focus and value creation move. By selling a division with limited synergies to its core electrification and automation businesses, ABB can free up resources to concentrate on its competitive strengths in energy transition and core industrial automation. These core segments, especially electrification, are benefiting significantly from the massive demand driven by global AI data center construction. - While potentially losing a high-growth segment in the short term, this move helps ABB optimize its capital structure, improve profitability and shareholder returns, and reduce management complexity associated with business diversification. It signals ABB's transformation into a leaner, more efficient, and resilient industrial technology powerhouse, better positioned to capitalize on AI-era infrastructure opportunities. What impact will this transaction have on the competitive landscape of the global AI robotics industry? - SoftBank's aggressive entry and its immense financial and technological integration capabilities are likely to accelerate consolidation in the global AI robotics industry. It will foster a market dominated by a few giants with highly vertically integrated operations, putting greater pressure on smaller, single-technology robotics firms. - This acquisition signals that competition in AI robotics will shift from single-technology innovation to an ecosystem battle. Players with full-stack capabilities, from chips to cloud and software to hardware, will gain a significant advantage. This could compel other tech giants and industrial automation companies to re-evaluate their AI robotics strategies, seeking similar integrations or partnerships to counter SoftBank's challenge.