SoftBank's $5.4 billion AI bet hits a stunning roadblock
Yahoo Finance ·
SoftBank's $5.4 billion AI bet hits a stunning roadblock Faizan Farooque Thu, November 5, 2026 at 2:34 PM EST 1 min read 9984.T -6.77% ABBN.SW -4.20% META -3.72% SFTBY -13.03% This article first appeared on GuruFocus . SoftBank Group Corp. ( SFTBY , Financials ) shares slumped 6.8% after China vetoed its proposed $5.4 billion acquisition of ABB's robotics section, a blow to its efforts to expand into artificial intelligence and automation.Chinese officials have blocked the deal, Swiss engineering giant ABB said. Both firms are still in talks on the agreement.China's National Development and Reform Commission said it was concerned about data from robotics being sent outside to be used to train AI models, including those built by SoftBank-backed startup OpenAI.That matters since China accounts for around 30% of ABB's robotics business. The corporation has a big production and research presence in Shanghai.Masayoshi Son, the CEO of SoftBank, said physical AI, which blends robots with powerful computers, is a top investment goal.The ban also follows China's unwinding of Meta's acquisition of AI company Manus earlier this year.Another SoftBank investment caught in regulatory doubt. An unknown overseas regulator posed some questions, and payments firm OPay recently withdrew its $304 million U.S. initial public offering plan.The failed takeover represents a setback for SoftBank's push for expansion in industrial automation and casts a shadow over future technological collaborations with China.The next trigger is whether SoftBank and ABB can renegotiate the deal or address concerns expressed by Chinese regulators.
DYAX Investor Sentiment
Bullish (Long) 36% · Bearish (Short) 64%
380 participants
Related News
- Berkshire Hathaway Reports Nov. 7 With Its Stock at a Record. Its Cash Pile Is the Number to Watch.
- Reddit Sinks 8% as Social Ad Worries Deepen in Tech Rout
- Amazon-Uber Eats Deal Sends DASH Stock To Biggest Drop In A Year
- Advanced Micro Devices vs. Taiwan Semiconductor Manufacturing: The AI Sell-Off Is Exposing a Critical Difference Investors Shouldn't Ignore for 2027
- Amazon.com (AMZN) Could Gain From Slower AI Data Center Expansion
- Navitas Sinks 15% as AI Chip Stocks Slide After Midterms
