What does SoftBank want with ABB Robotics?




SoftBank Group’s agreement to acquire ABB’s robotics division for $5.4 billion is one of the most striking moves in industrial automation in recent years.

It not only reshapes ABB’s corporate structure, but also raises a central question for the robotics industry: What exactly does SoftBank want with ABB Robotics?

A mixed history in robotics

SoftBank is actually a significant player in the robotics sector, and even has a SoftBank Robotics division. The Japanese conglomerate – primarily known as a telecommunications company – became widely known in the robotics community in 2015 with the launch of Pepper, a humanoid robot designed for customer service and retail. Despite the publicity, Pepper never reached mass adoption and was eventually discontinued.

SoftBank later acquired Boston Dynamics from Alphabet – Google’s parent company – in 2017, at a time when the company’s dog-like Spot and humanoid Atlas robots were generating viral attention but little revenue.

Just a few years later, in 2020, SoftBank sold a majority stake in Boston Dynamics to Hyundai, keeping only a minority interest.

Those episodes left the impression that SoftBank’s robotics ambitions were more experimental than long-term. The ABB acquisition, however, signals something different: a move into industrial robotics, a market with proven scale, profitability, and strategic importance.

Moreover, SoftBank still owns and operates what appears to be a successful robotic facilities management business, built around a commercial cleaning robot called Whiz. (For a list of robots SoftBank currently or previously owned, see list below.)

Betting on Physical AI

SoftBank’s founder Masayoshi Son has been vocal about what he calls the next frontier: Physical AI. The idea is to combine artificial intelligence with embodied systems that can act in the physical world – not just software agents that generate text or images.

In announcing the ABB deal, Son said: “SoftBank’s next frontier is Physical AI. 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 brings to this vision decades of industrial expertise, a portfolio of robotic arms and automation systems deployed in automotive, electronics, logistics, and other sectors, and a workforce of 7,000.

ABB’s robotics division generated $2.3 billion in revenue in 2024 with an operating margin of more than 12 percent. That is a scale SoftBank’s earlier robotics efforts never approached.

Strategic fit or financial play?

Whether this is a serious return to robotics or another short-term bet depends on how SoftBank integrates ABB’s technology with its AI portfolio.

On one hand, ABB’s industrial robots could serve as a practical test bed for deploying AI-driven control, perception, and decision-making systems. On the other, SoftBank has a track record of bold entries and quick exits.

For ABB, the divestment reflects its view that robotics, while a strong business, had limited synergies with its other divisions. For SoftBank, the acquisition could position it as a central player in the emerging field of AI-powered robotics – if it commits for the long haul.

The outlook

The ABB-SoftBank deal is expected to close in 2026, pending regulatory approvals. By then, it should become clear whether SoftBank intends to build ABB Robotics into the backbone of its “Physical AI” vision or treat it as another high-profile portfolio asset.

For the robotics industry, the transaction represents both risk and opportunity. If SoftBank follows through, ABB Robotics could gain access to AI expertise, capital, and partnerships that accelerate innovation.

If not, the sector may witness a repeat of past cycles in which SoftBank made a splash, only to step back when returns proved elusive.

Either way, the $5.4 billion deal has put robotics squarely back at the center of SoftBank’s ambitions – and the industry will be watching closely.

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