SoftBank and Nvidia Consider Joining Funding Round for Robotics Firm Skild AI
News Summary
SoftBank Group and Nvidia are reportedly in talks to participate in a funding round exceeding $1 billion for Skild AI, a developer of foundation models for robots. This potential financing could nearly triple Skild AI's valuation from $4.7 billion earlier this year to approximately $14 billion. Skild AI previously raised $300 million in a Series A round and $500 million in a Series B round. In July 2024, Skild AI announced its Series A funding, stating its model was designed as a "shared, general-purpose brain" for diverse robots and tasks, aiming to enable the use of low-cost robots across various industries. The company introduced its "Skild Brain" AI model, capable of running on almost any robot to facilitate more human-like thought, function, and response. Nvidia, in May 2025, showcased its advancements in "embodied intelligence," which refers to AI that can perceive, reason, and act in real-world settings across sectors like manufacturing, biotechnology, and transportation. Separately, SoftBank Group announced in October 2025 its plan to acquire ABB's robotics business for $5.375 billion to enhance its existing AI and robotics investments.
Background
The robotics and artificial intelligence (AI) sectors are experiencing rapid evolution, particularly with the emergence of general-purpose AI models that promise to democratize robotics technology in terms of cost and application scope. Traditional robots are typically designed for specific tasks, whereas general-purpose models aim to provide robots with broader adaptability and learning capabilities. Nvidia, a global leader in AI chip manufacturing, is actively expanding its presence in "embodied intelligence," seeking to extend AI capabilities from the software layer into the physical world, enabling autonomous perception and action in physical systems like robots. SoftBank Group is known for its aggressive investment strategy in frontier technologies, with significant bets in AI and robotics, encompassing both equity investments through its Vision Fund and direct acquisitions of related businesses. Currently, the global labor market faces structural shortages, and the development of general-purpose robots is seen as a key solution to address this challenge. Capital markets exhibit strong enthusiasm for investments in AI and robotics, with major tech companies and investment funds competing to deploy capital and secure leading positions in this nascent market.
In-Depth AI Insights
What are the deeper drivers behind Skild AI's high valuation and potential funding round? - This is more than a simple startup investment; it's a strategic bet on the future disruptive potential of general-purpose AI foundation models for robots. - Nvidia's involvement suggests a desire to extend its market leadership in AI chips into the embodied intelligence hardware ecosystem. By backing Skild AI, Nvidia can aim to ensure its chips become the preferred choice for future general-purpose robot "brains." - SoftBank's participation aligns with its long-held vision of the "information revolution" and its strategy to generate outsized returns by investing in world-changing tech companies, particularly those addressing labor shortages through automation. - The potential $14 billion valuation, even amidst the 2025 AI investment boom, appears aggressive, reflecting exceptionally high investor expectations for the technological moat and future market scale of AI foundation models, rather than just near-term profitability. How might this development impact the future landscape of the robotics and AI industries? - If Skild AI secures this significant funding, it will accelerate the development and commercialization of general-purpose robot AI models, potentially shifting the industry from task-specific robots to more flexible, multi-functional systems. - The deep involvement of giants like Nvidia and SoftBank could forge a powerful industry alliance, collectively shaping open standards or dominant technology stacks for general-purpose robot AI, thereby posing significant pressure on smaller competitors. - This investment further validates the immense potential of AI foundation models in embodied intelligence, attracting more capital and talent to the sector, intensifying market competition, but also potentially accelerating technological iteration and application deployment. - The democratization of robot costs and support for the labor market could drive automation upgrades across various traditional industries like manufacturing and services, and even give rise to entirely new business models. What are the broader market implications and potential risks for investors? - Opportunities: Investors should monitor leading companies in AI chips, robot hardware manufacturing, automation solutions providers, and industrial software, as these are poised to benefit from the widespread adoption of general-purpose robot AI. Additionally, startups capable of developing large AI models could become the next investment hot spot. - Risks: The $14 billion valuation carries a high risk of being a bubble. If technological development or market adoption falls short of expectations, the valuation could face a significant correction. General-purpose AI robots are still in early stages, with technical maturity, safety, regulatory, and ethical issues posing long-term challenges. Furthermore, the risk of monopolization by leading tech giants could stifle the diverse development of the innovation ecosystem.