SoftBank Group Corp. is setting up an artificial intelligence-oriented warehousing joint venture with Symbotic Inc. and buying more shares in the supply-chain-services company, according to people familiar with the matter.
SoftBank and Symbotic are investing a combined $100 million to establish the joint venture, which will be called GreenBox Systems LLC, and will buy $7.5 billion of Symbotic’s AI-powered systems for its warehouses, said the people, who asked to not be identified because the details aren’t public.
Representatives for SoftBank and Symbotic declined to comment.
The deal doubles down on SoftBank’s robotics and automation strategy, an increasingly important focus for the Japanese tech investment business. The AI sector is drawing enormous sums of money from tech giants, including Microsoft Corp., as companies bet on growth in the technology, which has the potential to replace human workers in everything from the arts to manufacturing and supply chains. The deal comes a month after SoftBank founder Masayoshi Son told investors in June that he would go back on the offensive in tech investing soon, seeking to establish his credentials in the AI field.
SoftBank will own about 65% of GreenBox and the rest will be owned by Symbotic, which went public in 2022 through a merger with a SoftBank-backed special purpose acquisition company.
SoftBank, which already owns about 36% of Symbotic, is upping its stake via the purchase of about 18 million shares in the company from Symbotic Chief Executive Officer Rick Cohen, the people said. Symbotic will also issue warrants to SoftBank representing about 2% of its outstanding shares.
Symbotic fell 4.4% to close at $43.68 in New York trading Friday, giving the company a market value of about $24 billion. The shares have gained about 263% this year.
The Wilmington, Massachusetts-based company helps companies save money by using robots to help fulfill customer orders. Walmart Inc. is among its most important clients, with plans to implement Symbotic systems in all 42 of its regional distribution centers.
Author: Michelle F. Davis and Katie Roof