On October 8, SoftBank Group agreed to acquire ABB’s robotics business for $5.375 billion (about RMB 38.3 billion), marking a major push into physical AI.

ABB Robotics is a leading global industrial robotics player. In 2024, it generated $2.3 billion in revenue, around 7% of ABB’s total sales, and ranked second globally by market position.

ABB said the divestment will allow it to focus on electrification and automation, while giving the robotics business a new platform for growth. The move follows earlier plans to spin off the unit via IPO.

The decision comes amid slower industrial robotics demand and rising competition, especially in China, where local players are rapidly gaining share. By 2025, domestic manufacturers are expected to exceed 60% of the market.

Analysts cited by Supply Chain Brain noted SoftBank’s offer is above expected IPO valuation, estimated below $4 billion, making the deal more than 30% higher than a standalone listing.

For ABB, the transaction provides capital and a clearer strategic focus on core businesses.

SoftBank has invested in robotics for over a decade, starting with Aldebaran and the humanoid robot Pepper, followed by the acquisition and later partial sale of Boston Dynamics. Despite setbacks, it has continued expanding its AI ecosystem.

In the past year, SoftBank invested heavily in AI, including nearly $9.7 billion into OpenAI and its long-standing stake in Arm.

Chairman Masayoshi Son said physical AI is the company’s next frontier, combining AI and robotics to transform industrial productivity.

The deal is expected to reshape the global robotics landscape as AI and industrial automation converge. Industry leaders, including Nvidia CEO Jensen Huang, have described physical AI as the next major wave, where AI is embedded into real-world machines.

As competition accelerates, major tech and industrial players are racing to secure positions in the emerging physical AI era.