SoftBank Group has struck a landmark deal to acquire the robotics division of Swiss industrial technology firm ABB for approximately $5.4 billion, positioning the Japanese conglomerate to deepen its bet on AI-driven robotics.

Under terms of the transaction, ABB will abandon prior plans to spin off the unit as a standalone public company and instead hand control to SoftBank. The sale is expected to yield net cash proceeds of about $5.3 billion for ABB, with closing anticipated in mid-to-late 2026, subject to regulatory approvals.

The robotics division, employing about 7,000 people, reported roughly $2.3 billion in revenue for 2024 — representing about 7% of ABB’s total turnover. While its revenue has declined somewhat in recent years, SoftBank sees the opportunity to reinvigorate growth by combining ABB’s engineering and systems capabilities with its strengths in AI, computing, and robotics platforms.

CEO Masayoshi Son described the move as central to SoftBank’s vision of “Physical AI” — the fusion of physical robotics and intelligent systems — and plans to integrate the acquired business into SoftBank’s existing robotics and AI portfolio, which includes investments in robotics firms such as Pepper, AutoStore, and Berkshire Grey.

ABB’s incoming leadership, under new CEO Morten Wierod, emphasized that ABB and SoftBank share convictions about the rise of AI-based robotics and that leveraging SoftBank’s computational and AI expertise can reignite the robotics division’s potential.

On financial markets, ABB shares rose about 3% in pre-market Zurich trading, while SoftBank shares saw modest gains. Analysts note that the deal will allow ABB to refocus on its core automation and electrification businesses, using the proceeds for growth investments and shareholder returns.

However, the acquisition comes with challenges: SoftBank must manage integration, sustain profitability, navigate regulatory approvals across jurisdictions, and contend with soft demand dynamics in robotics. Still, this bold move underscores how AI and robotics are converging as strategic priority domains for major tech investors.