The Chinese government has halted the acquisition of Swiss company ABB's robotics division by Japan's SoftBank Group, citing data security concerns. This setback is expected to disrupt SoftBank Chairman Masayoshi Son's strategy to expand into artificial intelligence (AI) through robotics.
According to the Financial Times on November 5, the National Development and Reform Commission of China informed SoftBank that it would not approve the acquisition of ABB's robotics division.
SoftBank had agreed to acquire ABB's robotics division for $5.375 billion last October, aligning with Son's strategy. The deal passed China's antitrust review in February, but it faced obstacles during a subsequent national security review of foreign investments. SoftBank is reportedly assessing the reasons for the denial and whether it can reapply.
ABB is a Swiss company that supplies industrial robots and automation solutions to manufacturers in sectors such as automotive and electronics. Notably, China accounts for about 30% of ABB's robotics revenue, making it a crucial market.
The Financial Times reported that Chinese authorities are concerned that data generated during the operation of these robots could be transferred overseas and used for AI model training, potentially involving OpenAI, in which SoftBank is a major investor.
Amid rising tensions between China and Japan and intensifying competition in advanced technology between the U.S. and China, there are concerns about the transfer of robotics-related technology and data to Japanese ownership.
With the Chinese government's intervention, Son's plans to strengthen his business in the physical AI sector through robotics are likely to face significant challenges. Recently, SoftBank has aggressively invested across the AI ecosystem, including AI infrastructure, energy, and robotics. When announcing the ABB acquisition, Son stated, "SoftBank's next frontier is physical AI," expressing a vision to lead a groundbreaking evolution that merges ABB's robotics with AI and robotics to advance humanity.
* This article has been translated by AI.
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