SoftBank Eyes ABB Robotics Unit for $5.4B, Boosting AI Strategy

SoftBank Group announced Monday its definitive agreement to acquire ABB’s robotics division for a staggering $5.4 billion, signaling a bold move into the realm of advanced artificial intelligence and automation. This acquisition, contingent upon customary regulatory approvals, effectively cancels ABB’s previously considered plan to spin off its robotics unit as a publicly traded entity.

Masayoshi Son, SoftBank’s visionary founder, articulated the strategic rationale behind the deal: “SoftBank’s next frontier is Physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics – driving a groundbreaking evolution that will propel humanity forward.” Son’s concept of Artificial Super Intelligence (ASI) envisions AI systems possessing cognitive capabilities far surpassing human intelligence, potentially by a factor of 10,000, a concept that has both captivated and sparked considerable debate within the tech community.

This acquisition underscores SoftBank’s ambitious strategy to position itself as a central player in the burgeoning AI landscape. The Japanese conglomerate has been actively investing in and acquiring companies across various technology sectors, including its ownership of Arm, the British chip designer whose architecture powers a vast majority of mobile devices, and a significant stake in OpenAI, the research company behind the groundbreaking ChatGPT.

SoftBank’s existing portfolio also includes investments in robotics-related companies such as AutoStore Holdings, a warehouse automation specialist, and Agile Robots, which develops intelligent robotic arms. The acquisition of ABB’s robotics division significantly expands SoftBank’s capabilities in industrial automation and robotics, creating synergy with its existing holdings and providing a more complete platform for integrating AI into physical systems.

For ABB, the sale of its robotics division represents a strategic pivot. Morten Wierod, who assumed the role of CEO of ABB in August 2024, had previously advocated for the spin-off of the robotics unit. However, the compelling offer from SoftBank appears to have changed the calculus. The company said in a statement that the sale “will create immediate value to ABB shareholders” and stated that it will deploy the capital generated from the transaction in line with its established capital allocation framework. Analysts suggest that ABB may use the proceeds to further invest in its core electrification and automation businesses, and potentially pursue acquisitions to strengthen its position in those markets.

The market response to the announcement has been largely positive, with investors viewing the transaction as a win-win for both companies. SoftBank gains a leading robotics platform with a global presence and a strong engineering pedigree, while ABB unlocks significant value for its shareholders and streamlines its business portfolio to focus on its core strengths. The long-term implications of this deal for the future of AI-powered robotics and industrial automation remain to be seen, but it undoubtedly marks a significant milestone in the evolution of both SoftBank and the broader technology industry.