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The $5.4 billion acquisition was intended to underpin founder Masayoshi Son’s expansion into physical artificial intelligence (AI), technology that combines AI with machines operating in the real world.
China’s National Development and Reform Commission told the Japanese group the transaction would not proceed, according to a Financial Times report. China has reportedly blocked SoftBank’s planned purchase of ABB’s robotics division.
More than 90% of the robots it supplies to Chinese customers are manufactured locally, according to the report.
Regulators scrutinised the robotics unit’s Chinese supply chains and sought to retain some manufacturing capabilities in the country, according to people familiar with the process cited by the FT. The commission was also concerned that robotics data could be transferred overseas and used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor, the report said. Son is also in talks to acquire Allied Universal, the private security group that owns Britain’s G4S, with plans to use robotics and AI to improve productivity, according to the report.
China is the robotics division’s biggest market. However, SoftBank has not established whether another approval attempt could succeed.