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Japan’s SoftBank Group has agreed to acquire the robotics branch of Swiss engineering company ABB for $5.37 billion (€4.62bn) as it pushes ahead with physical AI.
Unlike digital AI, which works in the virtual realm, physical AI allows machines such as robots to operate in real-world environments.
The acquisition is part of a broader strategy held by the Japanese multinational investment firm, headquartered in Tokyo, which is actively investing in AI chips, AI robots, AI data centres, and energy.
The current acquisition, approved by the firm’s board, is still subject to regulatory approvals, although SoftBank expects the deal to close in the second half of 2026.
“SoftBank’s next frontier is Physical AI,” said Masayoshi Son, CEO of SoftBank. “Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics — driving a groundbreaking evolution that will propel humanity forward.”
ABB CEO Morten Wierod added: “ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing.”
For Zurich-based ABB, the deal means it will not pursue its earlier intention to spin off its robotics business as a separately listed company.
Peter Voser, chairman of ABB, said: “SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off. It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders.”
ABB’s robotic branch has approximately 7,000 employees. The ABB Robotics division reported revenues of $2.3bn (€1.98bn) in 2024, which represented about 7% of ABB Group revenues, and had an operational EBITA margin of 12.1%.
ABB will carve out its robotics business into a newly established holding company, and the expected separation cost is around $200 million (€172mn).
Shares in the Swiss firm were up by more than 1.4% in the morning in Europe. SoftBank’s share price closed 2% lower after the Asian trading session on Tuesday, before the announcement was made.