What if the next big leap in artificial intelligence does not stay on screens but walks into living rooms and workplaces? SoftBank is reportedly negotiating to take a majority stake in 1X Technologies, the humanoid robot developer already backed by OpenAI, at a valuation near $6 billion. Talks remain fluid, yet the very existence of these discussions signals how aggressively major investors are chasing physical AI right now.
Why SoftBank Wants Control Of This OpenAI-Backed Robotics Firm
I have watched SoftBank’s investment style for years. When the group decides a sector represents the next frontier, it rarely moves cautiously. Humanoid robotics appears to have reached that status. The current conversations center on acquiring controlling interest rather than a minority position, which would give SoftBank significant influence over product direction, scaling, and future partnerships.
According to people familiar with the matter, the discussions are active but not finalized. Terms could still shift. SoftBank has declined to comment while 1X has not issued an immediate response. Even so, the reported valuation of roughly $6 billion stands out because it sits below the higher target the company pursued in an earlier fundraising attempt.
In my view, the timing feels deliberate. SoftBank is already deep into artificial intelligence through massive commitments to OpenAI and a major infrastructure project. Adding a controlling position in a humanoid robotics player would extend that strategy from pure software intelligence into machines that can interact with the physical world.
OpenAI’s Earlier Connection To 1X
OpenAI is not a newcomer to this story. Through its Startup Fund, the company led a $23.5 million Series A2 round for 1X in 2023. Other participants included Tiger Global and several Norway-based investors. At the time, the fund’s manager highlighted how 1X was working at the front edge of robotics designed to augment human labor.
That early capital was meant to help the company push androids toward commercial scale. Last year OpenAI and 1X even explored a full acquisition, though those talks never resulted in a completed deal. SoftBank stepping in now creates an interesting dynamic. The same group that has poured tens of billions into OpenAI could end up controlling a robotics firm that OpenAI once considered buying itself.
Perhaps the most interesting aspect is how these relationships keep overlapping. SoftBank’s heavy exposure to OpenAI already links the two entities tightly. A majority stake in 1X would deepen that web of connections across AI software and physical robotics.
The NEO Robot And Early Market Response
1X began life as Halodi Robotics before rebranding. Its focus has stayed consistent: building humanoid machines intended to operate safely around people. The current consumer-facing product is called NEO. Designed as a home robot, it can handle household tasks and learn new actions through the company’s Redwood AI model.
Pricing sits at $20,000 for an early-access purchase. A subscription option runs $499 per month. United States deliveries are planned to start in 2026, with expansion into additional markets the following year. The company has also accepted $200 refundable deposits for priority units.
Demand appears stronger than many expected. During the first week after preorders opened, more than 10,000 NEO units were ordered. No customer deliveries had occurred at the time of the latest reports, yet the volume of interest suggests genuine curiosity about home humanoids. I find that number striking. Ten thousand deposits or commitments in a single week is not something you see every day in emerging hardware categories.
Still, raising capital has not been entirely smooth. Last fall 1X aimed to raise $1 billion at a $10 billion valuation. It secured less than half of that target. A SoftBank transaction at around $6 billion would therefore land below the company’s previous ambitions. That gap raises questions about how the market currently prices pure-play humanoid developers versus broader industrial robotics businesses.
SoftBank’s Parallel Move Into Industrial Robotics
While negotiating with 1X, SoftBank is already advancing another large robotics transaction. In October 2025 the group agreed to acquire ABB’s robotics business for $5.375 billion. The deal will give SoftBank full ownership of a newly created holding company containing the Swiss firm’s robotics unit, subject to regulatory approvals and customary closing conditions.
That transaction is expected to close in mid-to-late 2026. ABB’s business specializes in industrial robotic arms and automation systems. The contrast with 1X is clear. One focuses on factory and industrial applications. The other targets humanoid machines designed for homes and human environments. Together they would give SoftBank coverage across different segments of the robotics spectrum.
When the ABB agreement was announced, SoftBank’s chairman and CEO described physical AI as the company’s next frontier. He spoke of combining artificial intelligence with robotics technology. Those comments feel even more relevant now that humanoid discussions are underway. SoftBank has history in the space, including the earlier Pepper humanoid and a previous stake in Boston Dynamics. The remaining Boston Dynamics shares were sold in July after an earlier majority divestiture in 2021.
In my experience following these cycles, SoftBank tends to re-enter sectors it once exited when the technology and market timing improve. Physical AI may be that moment again.
Deepening Ties With OpenAI Through Capital And Infrastructure
SoftBank’s relationship with OpenAI has grown substantially. A $10 billion second tranche investment closed on July 1 through SoftBank Vision Fund 2. That payment formed part of a larger $30 billion follow-on commitment announced earlier in the year. A third $10 billion tranche is scheduled for October 1.
The July investment was financed with $10 billion borrowed under a bridge facility. Earlier statements indicated SoftBank had already invested $34.6 billion in OpenAI since September 2024 before adding the new $30 billion commitment. The pre-money valuation referenced for the follow-on plan stood at $730 billion.
Such large exposure creates both opportunity and sensitivity. SoftBank shares dropped more than 12 percent in June after reports suggested OpenAI might delay a public listing until 2027 while aiming to protect a potential valuation near $1 trillion. Movements in SoftBank’s stock have become more closely linked to developments around OpenAI.
Financing these commitments has required creative approaches. SoftBank reduced the target size of a planned margin loan backed by its OpenAI stake from roughly $10 billion to about $6 billion after banks and private credit funds expressed concerns about structure and valuation. More recently the group has considered a $10 billion to $20 billion bond sale in dollars and euros, with part of the proceeds expected to refinance the bridge loan tied to the OpenAI investment.
Beyond pure equity, SoftBank and OpenAI also share the Stargate infrastructure project announced in January 2025 alongside Oracle and an Abu Dhabi-based investment firm. The initiative outlined plans for as much as $500 billion of investment in United States artificial intelligence infrastructure over four years, beginning with an initial $100 billion commitment. SoftBank continues directing capital toward OpenAI as its overall portfolio concentrates more heavily around artificial intelligence.
What A Majority Stake Would Mean For 1X
If SoftBank ultimately gains control, 1X would operate under the umbrella of a Japanese investment group with deep pockets and a long-term orientation. That could accelerate production scaling, expand distribution, and open doors to additional technology partnerships. At the same time, majority ownership often brings changes in strategy and governance.
The company’s near-term focus remains the NEO rollout. Priority United States deliveries are scheduled for 2026. The subscription model is expected to ship later. Success will depend on reliable performance in real homes, safety around people, and the ability of the Redwood AI model to help the robot learn new tasks over time.
I keep coming back to the preorder numbers. More than 10,000 units in the first week shows appetite exists. Converting that interest into satisfied customers will be the real test. Hardware is harder than software in many ways. Manufacturing, logistics, support, and continuous software updates all need to work together.
A SoftBank-backed 1X might also benefit from the industrial robotics expertise coming through the ABB transaction. Cross-pollination between consumer humanoids and industrial automation systems is not guaranteed, yet the potential for shared learning exists.
Broader Implications For The Robotics And AI Landscape
This potential deal sits inside a larger shift. Investors are no longer content with artificial intelligence that lives only in data centers or smartphones. The next wave involves machines that move, manipulate objects, and operate in human environments. SoftBank’s chairman has framed this as physical AI. Other large technology and investment groups are making similar bets.
Valuations remain a moving target. 1X sought $10 billion not long ago and may now discuss a figure closer to $6 billion. That adjustment reflects both market conditions and the capital intensity of bringing humanoid robots to commercial readiness. Companies that can demonstrate reliable products and clear paths to scale will likely command stronger pricing power going forward.
For OpenAI, the situation is nuanced. It already holds an early investment position through its startup fund. SoftBank taking majority control would not erase that relationship, but it would change the ownership structure around a company OpenAI once considered acquiring. The overlapping interests between SoftBank and OpenAI make the outcome particularly interesting to watch.
From a market perspective, successful consumer humanoids could eventually influence labor markets, household productivity, and even elder care. Those long-term possibilities remain years away from widespread reality. Near-term progress will be measured in units delivered, reliability metrics, and customer retention.
Key Factors That Could Shape The Outcome
Several elements will determine whether the SoftBank-1X talks result in a completed transaction.
- Final valuation and ownership percentage agreed by both sides
- Regulatory reviews that often accompany majority acquisitions
- SoftBank’s ability to finance the deal alongside existing AI commitments
- 1X’s progress toward delivering the first NEO units on schedule
- Broader market sentiment toward humanoid robotics valuations
Talks can collapse even late in the process. They can also expand in scope. SoftBank has shown willingness to deploy significant capital when it believes a sector is strategic. The combination of OpenAI ties, the ABB robotics acquisition, and the explicit physical AI framing suggests the group views this space as more than a side experiment.
I have found that the most revealing moments often come after a deal closes, when integration begins and product roadmaps become clearer. Until then, the reported discussions themselves already tell us something important: major capital is treating humanoid robotics as a serious growth arena rather than speculative science fiction.
Looking Ahead At Physical AI Investments
SoftBank’s overall approach continues to concentrate around artificial intelligence. The scale of capital directed at OpenAI, the Stargate infrastructure project, the ABB robotics purchase, and now potential control of 1X form a coherent pattern. Software intelligence, computing infrastructure, industrial automation, and humanoid machines are being woven into a single strategic thesis.
Whether the 1X transaction closes at the currently discussed valuation or takes a different shape, the direction of travel is clear. SoftBank is positioning itself across multiple layers of the AI stack. That positioning carries risks, especially given the size of existing commitments and the financing structures involved. It also creates potential upside if physical AI develops as rapidly as the group anticipates.
For 1X, external capital at this stage could prove decisive for manufacturing scale and market entry. The company has already demonstrated the ability to generate strong early interest in its home robot. Turning that interest into a sustainable business will require consistent execution over the next several years.
The broader robotics sector is watching closely. Competing humanoid developers, industrial automation firms, and investors tracking valuation benchmarks will all pay attention to how this situation resolves. A completed SoftBank majority stake would set a notable reference point for future transactions in the space.
In the end, the story is larger than one potential deal. It reflects a growing conviction that artificial intelligence will not remain confined to digital interfaces. Machines that can see, move, and act in the physical world are attracting serious capital. SoftBank’s reported interest in 1X is one of the clearest recent signals of that shift. How the talks conclude will offer further evidence of how far and how fast the market is prepared to go.
As deliveries of the first NEO units approach and SoftBank works through its existing robotics acquisition, the next twelve to eighteen months should bring more concrete data. Until then, the negotiations themselves underscore a simple reality: physical AI has moved from concept stage into the realm of multi-billion-dollar strategic bets.
