SoftBank Snaps Up ABB’s Robots in a $5.4 Billion Bet on “Physical AI”

SoftBank is buying the robots. The Japanese tech investor agreed to acquire ABB’s robotics division for about $5.4 billion, shelving the Swiss group’s plan to spin the unit off as a standalone company and giving Masayoshi Son another cornerstone for his AI empire.

The deal — still subject to global regulatory approval — drops one of the world’s top factory-automation players straight into SoftBank’s orbit. ABB’s robotics arm employs roughly 7,000 people and booked around $2.3 billion in sales last year with a 12.1% operating margin. ABB expects about $5.3 billion in cash proceeds and says it will deploy the money under its existing capital-allocation playbook. Closing is penciled in for mid-to-late 2026.

For Son, it’s all part of a bigger thesis he calls “Physical AI” — fusing artificial intelligence with real-world machines.

“Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics,” he said, casting the deal as the next step beyond chips and data centers.

SoftBank already owns Arm and holds major AI stakes; it’s also no stranger to robots, from early bets like Aldebaran’s Pepper to positions in AutoStore and Agile Robots.

Strategically, ABB brings serious industrial bona fides — robots that weld, pack, and assemble across factories and warehouses, plus the software and sensors that make them adaptable on the floor. It competes with Fanuc, Yaskawa, and Kuka, and gives SoftBank a mature platform just as demand for AI-enabled automation accelerates from labs to loading docks.

The price tag also solves a quandary for ABB. New CEO Morten Wierod had floated a 2026 spin-off to surface value; a clean sale to a deep-pocketed buyer delivers that value up front and lets ABB refocus on its core electrification and automation businesses.

One open question is financing — SoftBank hasn’t detailed how it will fund the acquisition — but the direction of travel is clear. After spending years seeding the digital side of AI, Son is now buying the arms and grippers to match. If “Physical AI” is the next frontier, SoftBank just planted its flag.

Reuters, CNBC, Bloomberg, Market Watch, the Financial Times, and the Wall Street Journal contributed to this report.