China Blocks SoftBank's $5.3 Billion Deal for ABB Robotics Over AI Training Data

SoftBank and ABB are in talks on SoftBank’s $5.3 billion purchase of ABB’s robotics business after China’s foreign investment security review office prohibited the acquisition in China, SoftBank said.

Regulators were concerned that robotics data could be transferred overseas and used to train AI models, according to a published report. SoftBank’s statement gave no reason. Where a robot’s data may travel is now a question a buyer in a similar deal has to answer before it prices the sale.

What happens to the deal?

Neither company said whether the sale can close without the China business, or whether the price would change. Both say they are in close dialogue and working constructively on the transaction, and SoftBank said it will promptly announce any decision that requires disclosure.

When ABB announced the sale on Oct. 8, 2025, it expected to close in mid-to-late 2026. The deal replaced ABB’s earlier plan to spin the robotics unit off as a separately listed company. The unit had revenue of $2.3 billion in 2024, about 7% of ABB’s group total, ABB said.

Why does China have a say?

About 90% of the machines ABB Robotics builds for Chinese customers are made in China, the report said, and ABB makes a significant number of robots at its Shanghai factory. A Swiss seller and a Japanese buyer still needed Beijing’s clearance because so much of the business sits inside China.

Is this the first block of its kind?

No. Another published report called it the second big technology deal to fail under China’s foreign investment screening in 2026. In April, China stopped Meta’s $2 billion purchase of Manus, an AI startup founded in China that later moved to Singapore.

SoftBank’s next disclosure will show whether the sale closes with ABB’s China business or without it.