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SoftBank Group of Japan has announced that it has reached an agreement to acquire the robotics unit of Swiss engineering company ABB for $5.4 billion (approximately €4.62 billion), a key milestone in its quest to enter the emerging physical AI market. Both companies have approved the transaction, and it is anticipated to be closed in the second half of 2026, subject to regulatory approval.
SoftBank, under the leadership of CEO Masayoshi Son, is seeking to combine the use of advanced robotics with artificial intelligence to empower machines to operate effectively in the real world. Physical AI concerns the creation of intelligent robots capable of interaction with the physical world as opposed to digital AI systems, which operate virtually.
Son referred to this acquisition as a decisive move towards achieving SoftBank's vision of integrating robotics with Artificial Super Intelligence (ASI). According to him, the partnership with ABB Robotics will contribute to the integration of the best technologies and knowledge, enabling progress in intelligent automation and enhancing industrial applications.
Zurich-based ABB will carve out its robotics business into a new holding company before the sale is completed, with the process expected to cost approximately $200 million (€172 million). ABB’s board chairman, Peter Voser, confirmed that the offer from SoftBank had been carefully reviewed and was considered favorable compared to the company’s earlier plan to spin off the robotics division as an independent, publicly listed entity.
ABB Robotics, with approximately 7,000 employees worldwide, is projected to generate $2.3 billion (€1.98 billion) in turnover in 2024, which is roughly 7% of the total turnover of ABB Group. The division registered a satisfactory EBITA margin of 12.1% which validates its role as one of the key profit streams of the company.
ABB CEO Morten Wierod stated that SoftBank’s acquisition would provide the division with a solid foundation to accelerate its growth and expand its presence in the AI and robotics sectors.
The acquisition of ABB Robotics by SoftBank is part of its broader project to invest in AI infrastructure, including AI chips, robotics systems, data centers, and renewable energy solutions. The leadership of the company perceives physical AI as the third critical stage in the evolution of AI, with its application in industries such as manufacturing, logistics, and human-assistive technologies being implemented.
Following the announcement, ABB’s shares rose over 1.4% during morning trading in Europe. SoftBank’s shares, however, closed 2% lower in Tokyo before the official statement was released. Upon completion, the acquisition will position SoftBank as a major player in AI-powered robotics and strengthen its global technology portfolio.
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