SoftBank and Symbotic Join Forces to Create AI-Driven Warehousing Solutions
On Monday, it was announced that SoftBank Group and supply-chain services provider Symbotic will collaborate to establish AI-driven warehouses, with the majority ownership belonging to the Japanese technology investor.
The companies are investing a total of $100 million in the project, which is called GreenBox Systems. The unit has also signed an agreement to purchase artificial intelligence-powered systems for its warehouses worth $7.5 billion from Symbotic.
The deal gives SoftBank, which is already an investor in Symbotic, options representing about two percent of the US company’s outstanding shares. The Japanese company announced that it also bought 17.8 million Symbotic shares from CEO Rick Cohen.
Symbotic shares rose 1.3% on Monday, while SoftBank closed up 1.2% on the Tokyo Stock Exchange before the news.
The move comes at a time when SoftBank CEO Masayoshi Son has said his conglomerate plans to shift its position into the “crime space” amid tensions over the development of artificial intelligence.
The rise of ChatGPT this year has led to a flood of investment in all things AI, even as broader funding dries up in an uncertain economy.
“GreenBox harnesses the powerful potential of A.I. and other supply chain enabling technologies,” said Vikas Parekh, CEO of SoftBank Investment Advisers.
The Japanese company owns 65 percent of GreenBox and Symbotic owns the rest. Greenbox will order Symbotic’s systems over six years starting in 2024.
Symbotic said it expects more than $500 million in annual recurring revenue from the sale of software, parts and services to the joint venture.
