In a significant move to bolster its position in the robotics and artificial intelligence sectors, SoftBank Group has announced the acquisition of ABB Group’s robotics division for $5.375 billion. This acquisition underscores SoftBank’s commitment to advancing “Physical AI,” a concept that integrates artificial intelligence with physical robotics to enhance real-world applications.
Details of the Acquisition
The agreement, disclosed on October 8, 2025, is subject to regulatory approvals and customary closing conditions, with the transaction expected to finalize by mid-to-late 2026. ABB’s robotics division, headquartered in Zurich, Switzerland, employs approximately 7,000 individuals and generated $2.3 billion in revenue in 2024, accounting for about 7% of ABB’s total revenue. The division specializes in manufacturing industrial robots and automation equipment utilized across various industries, including automotive and electronics manufacturing.
Strategic Implications for SoftBank
This acquisition aligns with SoftBank’s broader strategy to lead in the integration of artificial intelligence and robotics. Masayoshi Son, Chairman and CEO of SoftBank, emphasized the significance of this move, stating, “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.”
SoftBank has been actively expanding its robotics portfolio over the past decade. The company launched its own robotics platform, SoftBank Robotics Group, in 2014, and has invested in various robotics companies, including AutoStore, Skild AI, and Agile Robots. The acquisition of ABB’s robotics division is expected to further strengthen SoftBank’s capabilities in the robotics sector and accelerate the development of advanced AI-driven robotic solutions.
ABB’s Perspective and Future Plans
For ABB, the decision to sell its robotics division marks a strategic shift. Initially, ABB had planned to spin off the division into a separately listed company. However, the sale to SoftBank was deemed a more favorable option. Peter Voser, Chairman of ABB, commented, “SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off. It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders.”
The proceeds from the sale, estimated at approximately $5.3 billion after transaction costs, are expected to be deployed in line with ABB’s capital allocation principles, potentially including investments in core business areas, debt reduction, and shareholder returns.
Market Reactions and Industry Impact
The announcement of the acquisition has been met with positive reactions in the financial markets. ABB’s shares experienced a modest increase following the news, reflecting investor confidence in the strategic decision. Analysts have noted that the sale provides ABB with a lucrative exit from a division that, while successful, had limited synergies with its core electrification and automation businesses.
For SoftBank, this acquisition represents a significant step in its ambition to lead the convergence of AI and robotics. By integrating ABB’s established robotics technologies with its own AI expertise, SoftBank aims to drive innovation in automation and expand its influence in the rapidly evolving robotics industry.
Conclusion
SoftBank’s acquisition of ABB’s robotics division for $5.375 billion is a strategic move that underscores the company’s commitment to advancing Physical AI. By combining ABB’s industrial robotics expertise with SoftBank’s AI capabilities, this partnership is poised to drive significant advancements in the field of robotics and automation, potentially transforming various industries and enhancing human-robot collaboration in the years to come.
