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SoftBank will acquire ABB’s robotics division in a $5.4 billion deal, advancing founder Masayoshi Son’s mission to blend AI and robotics into what he calls “Physical AI.” The sale ends ABB’s earlier plan to spin off its automation unit and gives the Japanese tech giant one of the most established industrial robotics portfolios in the world.

ABB’s robot business, employing 7,000 workers and generating $2.3 billion in annual revenue, has struggled with slow growth and profit volatility. CEO Morten Wierod said the sale will allow ABB to focus on electrification and automation while funding future acquisitions.

SoftBank has a long history in robotics, from its Pepper robot to investments in Berkshire Grey, AutoStore, and OpenAI. Earlier this year, it spent $6.5 billion acquiring chipmaker Ampere to bolster its AI hardware capabilities.

The deal underscores SoftBank’s ambition to merge AI intelligence with mechanical autonomy, creating a new wave of connected robots capable of operating in manufacturing and logistics environments. Completion is expected by mid-to-late 2026, pending approvals.