SoftBank to acquire ABB’s robotics unit for $5.4B in AI push

SoftBank Group said on Monday it would acquire the robotics division of Swiss engineering firm ABB for $5.4 billion, marking one of its most ambitious bets yet on the convergence of artificial intelligence and robotics.

The deal, which remains subject to regulatory clearance in multiple jurisdictions, will see ABB abandon earlier plans to spin off its robotics business as a separate listed company.

ABB confirmed that it expects to receive roughly $5.3 billion in cash proceeds once the transaction closes, likely in mid-to-late 2026.

Masayoshi Son sets sights on ‘Physical AI’ frontier

SoftBank founder Masayoshi Son said the acquisition forms part of his broader vision to advance what he calls “Physical AI,” the integration of robotics and artificial intelligence into tangible, real-world systems.

“SoftBank’s next frontier is Physical AI,” Son said in a statement.

“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 has been vocal about his belief in his concept of Artificial Super Intelligence (ASI) that describes AI that is 10,000 times smarter than humans.

The Japanese conglomerate, which owns British chip designer Arm and holds a major stake in OpenAI, has been actively expanding its AI portfolio through targeted investments and acquisitions.

SoftBank already holds stakes in several robotics and automation companies, including AutoStore Holdings and Agile Robots, and this acquisition is expected to strengthen its technological ecosystem.

ABB to focus on core automation and electrification

The sale marks a significant strategic shift for ABB under CEO Morten Wierod, who took the helm in August 2024.

Wierod had previously advocated for a spin-off of the robotics unit but said the sale to SoftBank offers “the best long-term outcome” for both companies.

“ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics, and next-generation computing,” Wierod said.

“This will allow the business to strengthen and expand its position as a technology leader in its field.”

ABB’s robotics division employs around 7,000 people and generated $2.3 billion in revenue last year, accounting for about 7% of ABB’s total sales.

The division reported an operational EBITA margin of 12.1%.

Financial impact and restructuring plans

ABB said it expects to record a pre-tax book gain of about $2.4 billion upon completion of the transaction.

Separation costs are estimated at around $200 million, half of which have already been factored into its 2025 guidance.

Following the signing of the agreement, ABB will restructure its reporting into three main business areas starting in the fourth quarter of 2025.

The Robotics unit will be classified under “Discontinued operations,” while the Machine Automation division will move into ABB’s Process Automation business area.

The sale positions ABB to focus more sharply on its core strengths in electrification and process automation while providing SoftBank with a new cornerstone in its quest to lead the next era of intelligent robotics.