SoftBank's Strategic Move in AI and Robotics: Assessing Long-Term ROI in Industrial Automation Through Strategic M&A

In the rapidly evolving landscape of industrial automation, SoftBank Group has emerged as a bold architect of transformation, leveraging strategic mergers and acquisitions (M&A) to position itself at the forefront of the AI and robotics revolution. With a vision articulated by founder Masayoshi Son as "Physical AI"-the fusion of artificial intelligence with physical systems-SoftBank's recent investments in robotics, semiconductors, and automation technologies signal a calculated bet on the future of industry. This article evaluates the long-term return on investment (ROI) of SoftBank's key M&A activities in industrial automation, analyzing financial performance, strategic alignment, and market potential.

Strategic Acquisitions: Building the Foundation for Physical AI

SoftBank's M&A strategy in AI and robotics has been characterized by high-stakes, high-impact deals. The most notable of these is the $5.4 billion acquisition of ABB's robotics division in 2025, a move that consolidates SoftBank's ambitions in industrial automation. ABB's robotics unit, a global leader in automation solutions, generated $2.3 billion in revenue in 2024 with an operational EBITA margin of 12.1%, according to ABB's Q2 2025 results. By integrating ABB's expertise with its own AI capabilities, SoftBank aims to accelerate the development of intelligent, autonomous systems for manufacturing, logistics, and beyond.

Complementing this is the $6.5 billion acquisition of Ampere Computing, a semiconductor firm specializing in energy-efficient processors for AI workloads. While Ampere's revenue declined from $151.8 million in 2022 to $16.5 million in 2024, its technology aligns with SoftBank's broader ecosystem, including its ownership of Arm Holdings. The acquisition is expected to strengthen SoftBank's position in the custom silicon market, a critical enabler for next-generation AI applications, according to an InfotechLead analysis.

Earlier, SoftBank acquired Berkshire Grey, a warehouse automation specialist, for $375 million in 2023, as detailed in Berkshire Grey's merger announcement. This move underscores the company's focus on logistics and e-commerce, sectors projected to grow exponentially with the rise of AI-driven supply chains. Additionally, SoftBank's joint venture with Symbotic-a leader in AI-powered warehouse solutions-highlights its intent to dominate the warehousing sector. Symbotic's Q2 2025 results reveal a 40% year-over-year revenue surge to $550 million and adjusted EBITDA of $35 million, demonstrating the scalability of automation in logistics.

Financial Performance and ROI: A Mixed Picture

While SoftBank's M&A strategy is ambitious, the financial returns on these investments remain uneven. The company's fiscal year 2025 results show an overall operating income increase of 12.9% year-on-year to ¥989.0 billion, driven by growth across all segments, according to SoftBank's operating results. However, granular data on the ROI of specific acquisitions is scarce. For instance, Ampere Computing's declining revenue and operating losses ($510.6 million in 2024) raise questions about its short-term viability, though its strategic value in SoftBank's AI infrastructure could offset these risks, as noted in SoftBank's acquisition announcement.

ABB's robotics division, by contrast, presents a stronger financial profile. Pre-acquisition, the unit reported a 19.2% operational EBITA margin in Q2 2025, with revenues up 8% year-on-year to $8.9 billion, according to ABB's Q2 2025 results. SoftBank's ability to leverage ABB's margins and scale could yield significant long-term gains, particularly as demand for industrial automation accelerates. Similarly, Symbotic's robust financial performance-$22.4 billion in contracted backlog and a 36% year-over-year revenue increase-suggests a high ROI potential for SoftBank's partnership, as shown in Symbotic's Q3 2025 slides.

Risks and Challenges

SoftBank's history is not without missteps. Past investments in ventures like Katerra and Zume Pizza resulted in substantial losses, underscoring the risks of high-risk, high-reward strategies, as noted in a MandaEquilibrium overview. The Ampere acquisition, in particular, appears to be a costly gamble, given the startup's declining revenue. However, SoftBank's financial strength-bolstered by a 7.6% year-on-year revenue increase to ¥6.54 trillion in FY2025-provides a buffer against such volatility.

Moreover, the integration of acquired technologies into cohesive, market-ready solutions remains a challenge. For example, ABB's robotics unit must align with SoftBank's AI roadmap, a process that could take years to yield tangible returns. Similarly, the success of Symbotic's Warehouse-as-a-Service (WaaS) model hinges on market adoption and operational efficiency.

Strategic Vision vs. Financial Realities

Despite these risks, SoftBank's M&A strategy is underpinned by a compelling long-term vision. The company's focus on "embodied AI"-intelligent machines operating in real-world environments-positions it to capitalize on a market projected to grow at a 20% CAGR through 2030, according to a yPredict analysis. By consolidating expertise in robotics (ABB), semiconductors (Ampere), and logistics automation (Berkshire Grey, Symbotic), SoftBank is building a vertically integrated ecosystem capable of driving innovation and capturing market share.

The ROI of these investments will ultimately depend on execution. For instance, the synergy between ABB's robotics and Ampere's processors could enable breakthroughs in edge AI, while Symbotic's WaaS model offers recurring revenue streams. If SoftBank can scale these technologies effectively, the long-term returns could outweigh the upfront costs.

Conclusion: A High-Stakes Bet on the Future

SoftBank's strategic M&A in AI and robotics reflects a bold, forward-looking approach to industrial automation. While financial metrics for individual acquisitions remain mixed, the company's broader vision-coupled with its financial resilience-positions it to lead the transition to AI-driven physical systems. For investors, the key question is whether SoftBank can navigate integration challenges and market uncertainties to realize the full potential of its investments. If successful, the returns could redefine the ROI landscape for industrial automation in the AI era.