ABB Robotics Sold in Bid for Physical AI

Swiss engineering group ABB has an agreement to sell its ABB Robotics holding to Japan’s SoftBank Group in a deal valued at $5.4 billion. According to the buyer, a conglomerate with a focus on high-technology manufacturing businesses, the acquisition is guided by an emerging vision of automation and information.

“SoftBank’s next frontier is Physical AI,” according to chairman and CEO Masayoshi Son. “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’s previously announced plan to spin-off the Robotics business will not proceed, it confirmed. Chairman Peter Vosser stated that the sale “reflects the long-term strengths of the (Robotics) division, and the divestment will create immediate value to ABB shareholders.”

According to CEO Morten Wierod, the proceeds of the sale will fund new technology developments and production capacity in electrification and automation. New acquisitions are another possibility, according to Wierod’s remarks.

ABB Robotics is among the world’s largest providers of industrial robotics, developing robots of multiple sizes and functions, autonomous mobile robots, programming software, and robotic applications. Its technologies are widely deployed in automotive, electronics, logistics, food and beverage, health care, and construction activities.

The automotive and electronics industries are the two largest market segments for industrial robots, and China is the world’s largest market for robot installations.

Pending regulatory approvals, the sale will be completed in mid- to late 2026, according to ABB.

Physical AI is a fast-developing discipline within automation and engineering, involving autonomous systems like cameras, robots, and self-driving vehicles that can perceive the conditions in their field of operation, evaluate situations, decide how to respond, and perform activities in the real world.

As a result of the sale, ABB will be reorganized as three business areas – with Machine Automation becoming a part of the Process Automation business.

“SoftBank will be an excellent new home for the business and its employees,” according to ABB CEO Morten Wierod. “ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank’s robotics offering can best shape this era together.”