SoftBank to pay $5.4 billion for robotics producer, one of four areas it's investing to realize 'artificial super intelligence.'

By Steve Goldstein

ABB had previously looked to spin off the division, where revenue fell last year

Tech investment giant SoftBank Group said it will buy Swiss-Swedish firm ABB Robotics for nearly $5.4 billion as part of its plans to bring artificial intelligence into the physical realm.

Japanese investment group SoftBank said it's paying $5.38 billion for the robotics division of Swiss-Swedish engineering company ABB to advance a bet on what it calls artificial super intelligence.

The 7,000-employee unit earned $313 million before interest, tax, depreciation and amortization last year, on revenue of $2.28 billion, with an operating margin of 12.1%. Revenue did fall 7%, and ABB had previously been looking to spin off the unit before selling it.

Masayoshi Son, SoftBank's CEO, said the next frontier is what is called "physical AI." SoftBank said it is actively investing in AI chips, AI robots, AI data centers and energy to achieve artificial super intelligence.

CEO of SoftBank Masayoshi Son says "physical AI" is the next frontier.

SoftBank said it was not able yet to quantify the impact on earnings "due to a large number of uncertain factors" and that it will once it's possible to make a reasoned projection.

SoftBank's AI focus has helped the stock (JP:9984) double this year, rising 124%.

ABB (CH:ABBN) (SE:ABB) said it would use the proceeds "in line with its well-established capital allocation principles." ABB were steady despite analysts saying the price fetched was on the high side.

-Steve Goldstein

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10-08-25 0350ET