SoftBank is significantly expanding its presence in the robotics and artificial intelligence (AI) sectors with a planned $5.4 billion investment in robotics. This move signals a deepening commitment to "physical AI," where AI algorithms are integrated with physical hardware to create intelligent machines capable of interacting with the real world.
The investment involves SoftBank's acquisition of ABB Ltd's robotics business, a Swiss industrial automation company. The deal, expected to close by mid-to-late 2026, is subject to regulatory approvals in key regions, including the European Union, China, and the United States. This acquisition will significantly enhance SoftBank's robotics business by incorporating AI technology.
Masayoshi Son, Chairman and CEO of SoftBank, emphasized the strategic importance of this investment, stating that it aims to fuse artificial super intelligence with robotics to drive a groundbreaking evolution for humanity. He envisions SoftBank's next frontier as "physical AI". This aligns with SoftBank's broader strategy of investing in AI-centered industries, including semiconductors, data centers, and energy infrastructure.
ABB's robotics division, which employs over 7,000 people, manufactures industrial robotic arms and automation systems used in various sectors such as automotive, electronics, and logistics. In 2024, the division generated $2.3 billion in revenue and $313 million in EBITDA. ABB's CEO, Morten Wierod, believes that SoftBank will provide an excellent new home for the robotics business and its employees, sharing the vision that the world is entering a new era of AI-based robotics.
This acquisition is not SoftBank's first foray into robotics. The company previously launched Pepper, a humanoid robot, in 2014, although its production was later halted due to waning demand. Earlier in 2025, SoftBank integrated its robotics businesses, including SoftBank Robotics Group Corp., into a newly established company, Robo HD. This holding company includes various robotics portfolio companies like Berkshire Grey, Agile Robots, and AutoStore.
SoftBank's increasing investment in AI is evident in its plans to invest an additional $40 billion in OpenAI, the developer of ChatGPT, on top of the $2.2 billion already invested. SoftBank, OpenAI, and other firms are also planning to invest at least $500 billion in AI infrastructure in the United States over the next four years under the Stargate Project.
The rise of "physical AI" or "embodied AI" represents a significant shift in the field of artificial intelligence. Unlike traditional AI, which operates primarily in the digital realm, physical AI integrates AI algorithms with physical systems such as robots, autonomous vehicles, and other machines. This enables these systems to perceive their surroundings, make decisions based on real-time data, and interact with the physical world.
Embodied AI relies on technologies like machine learning, computer vision, and sensors to enable systems to perceive, reason, and act in real-world environments. These systems learn through continuous interaction with their environments, refining their models through feedback loops. This allows them to adapt to new tasks and environmental changes.
The implications of physical AI are far-reaching, with potential applications in various industries. In manufacturing, physical AI can enable robots to adapt to new product specifications and changes in the production line, improving efficiency and reducing downtime. In healthcare, AI-powered robots can assist in surgeries, diagnostics, and rehabilitation, improving precision and patient outcomes. Embodied AI can also enhance workplace safety and enable broader inclusion in the digital economy.
