SoftBank to buy ABB’s robot unit for $5.4 billion in AI-robotics merger push

SoftBank Group has agreed to purchase the robotics division of ABB for $5.4 billion, marking a major step in CEO Masayoshi Son’s plan to unite artificial intelligence and robotics into what he calls “Physical AI.” The acquisition, announced Wednesday, gives the Japanese conglomerate control of one of the world’s leading industrial robotics makers as it deepens its bet on AI-driven automation.

The deal signals ABB’s decision to cancel its planned spin-off of the robotics unit, opting instead for a direct sale that delivers immediate liquidity. ABB CEO Morten Wierod said the sale provides stronger financial flexibility to invest in electrification, automation, and potential new acquisitions.

ABB’s robotics arm employs about 7,000 people and generated $2.3 billion in 2024 sales, roughly 7% of ABB’s total revenue. Despite its technological strength, the division struggled with volatile margins and limited overlap with ABB’s core business.

For SoftBank, the acquisition builds on a decade-long robotics journey that began with its humanoid Pepper robot and now extends into advanced factory automation. The company has recently invested in Berkshire Grey, AutoStore, and OpenAI, and earlier this year bought chip designer Ampere for $6.5 billion.

The transaction is expected to close by late 2026, subject to regulatory approvals. ABB shares rose 2% in Zurich after the announcement, while SoftBank’s stock slipped 2% in Tokyo trading.