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Summary of article:
Chinese officials are rumored to have vetoed SoftBank’s $5.4 billion acquisition of ABB’s robotics business due to concerns about supply chain and data leakage; The move could undermine Sun’s plans to boost physical AI.
Rumor that Chinese authorities have blocked Japansoftbank Group (SoftBank) acquired for US$5.4 billionSwitzerland The case related to the robotics business of industrial giant ABB. The move could curtail SoftBank founder and CEO Masayoshi Son’s ambitions in the field of physical AI.
The deal was rejected by China’s National Development and Reform Commission (NDRC), the Financial Times (FT) reported, citing people familiar with the matter. SoftBank has recently been informed of the relevant decision and is currently trying to confirm whether it can resubmit its application and receive approval.
SoftBank’s share price fell 5.5% to 4,033 yen per share on Thursday (5th) intraday.
China is the largest market for ABB’s robotics business. More than 90% of robots sold to Chinese customers are produced locally. This Swiss companysweden The joint venture employs approximately 12,700 people in mainland China.
During the review process, China’s National Development and Reform Commission investigated ABB’s supply chain in China and requested that some of the robotics division’s manufacturing capabilities be retained in China, according to people familiar with the matter. Officials are concerned that data related to the robots could be transferred overseas and used to train AI models, including models developed by OpenAI, in which SoftBank has a large investment.
For SoftBank, the acquisition of ABB’s robotics business has always been an important part of Son’s layout of physical AI. It originally planned to partner with American AI and robotics company Rose to form the basis for development in this area. ABB is a Swiss conglomerate whose robotics business employs more than 7,000 people and supplies industrial robotic arms and robots to manufacturers including German carmaker BMW.
Summary FAQ
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Reports indicate that China’s National Development and Reform Commission is concerned that data related to robots will be leaked overseas and could be used to train AI models. It also requires that some manufacturing capabilities be retained in China, so it vetoes transactions.
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For SoftBank, the acquisition of ABB’s robotics business is an important step in Son’s layout of physical AI. They originally planned to create a development foundation with American AI and robotics company Rose.
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Following the news, SoftBank’s share price fell 5.5% to 4,033 yen per share; ABB’s robotics business has a large share of the Chinese market, and most of the robots sold to China are produced locally.
