SoftBank's $5.4 billion AI bet hits a stunning roadblock
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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.
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