SoftBank Acquires ABB Robotics in $5.4B Bet on ‘Physical AI’

SoftBank has announced a $5.4 billion deal to acquire the robotics division of Swiss engineering giant ABB, in a landmark move to strengthen its position in industrial automation and accelerate its vision of “Physical AI.” The acquisition, disclosed on October 8, 2025, is expected to close by late 2026, pending regulatory approvals.

ABB’s robotics arm, which generated $2.3 billion in revenue in 2024 and employs 7,000 people, will now join SoftBank’s growing automation portfolio, which includes Berkshire Grey, AutoStore, and Agile Robots. Originally planned as a spin-off, ABB opted for SoftBank’s offer to unlock immediate shareholder value—projected to deliver a $2.4 billion pre-tax book gain.

For SoftBank, this marks a major strategic shift from AI software and consumer robotics toward advanced industrial platforms. CEO Masayoshi Son described it as “uniting world-class hardware and intelligence,” aiming to push the boundaries of artificial superintelligence (ASI) across manufacturing and logistics.

The acquisition positions SoftBank as a leader in AI-powered industrial robotics, potentially outpacing rivals like Fanuc, KUKA, and Yaskawa. ABB, meanwhile, will refocus on higher-margin sectors like electrification and process automation.

While integration risks remain, including aligning ABB’s legacy operations with SoftBank’s AI-first ethos, the deal underscores growing investor confidence in AI-driven automation. If executed successfully, it could redefine the future of robotics and trigger a wave of innovation and consolidation across the global automation industry.