SoftBank Group has entered into a significant agreement to acquire the robotics business of Swiss engineering conglomerate ABB for a sum of $5.4 billion. This acquisition represents a pivotal move in the Japanese investor's overarching strategy to integrate robotics with artificial intelligence (AI), a vision championed by Founder and CEO Masayoshi Son, who refers to this synergy as “Physical AI.” The announcement, made on a Wednesday, underscores CEO Son's continued efforts to position SoftBank as a central force in the advancement of artificial intelligence.

While SoftBank had ventured into humanoid robotics a decade prior with its Pepper robot before subsequently scaling back those efforts, its recent engagement in the sector has been robust. This includes strategic investments in companies such as Berkshire Grey and AutoStore. Furthermore, SoftBank led a substantial $40 billion funding round for OpenAI, the developer behind ChatGPT, and in March, completed a $6.5 billion acquisition of the chip design company Ampere, as reported by Reuters.

For ABB, this deal signifies a departure from its initial plan to spin off and separately list its industrial automation business, a division that competes with prominent players like Japan's Fanuc and Yaskawa, and Germany's Kuka, in the manufacturing of factory robots. This decision marks the first major strategic move under ABB CEO Morten Wierod, who assumed leadership last year. The sale follows a period of persistent struggling sales and declining profitability within the robotics unit.

The robotics division, which employed 7,000 individuals and contributed $2.3 billion in sales last year—representing 7% of ABB's total revenues—was noted to have limited operational integration with the rest of the company, which predominantly concentrates on electrification and automation. Although ABB had informed its shareholders in April of its intention to spin off the robotics unit, the company ultimately opted for a sale. Wierod explained to Reuters that the SoftBank deal offered an immediate financial benefit.

The acquisition is projected to conclude between mid-2026 and late-2026, and ABB anticipates receiving cash proceeds amounting to approximately $5.3 billion. Wierod commented on the nature of the robotics market, stating, "We always said that robotics is a market with much higher volatility. And that's what we've seen over the years, both when it comes to growth, but also margins." He added that this market differs considerably from the current focus areas of the rest of ABB, which are electrification and automation.

ABB intends to allocate the proceeds from this sale towards the development of new technologies and expansion of production capacity within its electrification and automation segments. Wierod also indicated that the company might explore funding new acquisitions, noting, "We do have firepower to also do bigger acquisitions, so we're not excluding bigger deals."