SoftBank Group is forming a joint venture with supply chain services provider Symbotic to build AI-powered warehouses that will largely be owned by the Japanese tech investor, the companies said on Monday.
The companies are investing a total of $100 million in the venture, which will be called the GreenBox System. The unit also signed a contract to purchase $7.5 billion worth of AI-enabled systems for its warehouses from Symbotic.
The deal would give SoftBank, already an investor in Symbotic, guaranteed to hold about 2% of the outstanding shares of the US company. The Japanese company said it also bought 17.8 million shares of Symbotic from CEO Rick Cohen.
Shares of Symbotic were up 1.3% on Monday, while SoftBank closed 1.2% higher on the Tokyo stock exchange ahead of the news.
The move comes at a time when SoftBank CEO Masayoshi Son has said his group plans to shift its stance to “offensive mode” amid excitement over advances in technology. artificial intelligence.
ChatGPT’s rise this year has led to a flurry of investments in AI, even as broader funding is drying up amid an uncertain backdrop. economy.
“GreenBox harnesses the powerful potential of AI and other supporting technologies in the supply chain,” said Vikas Parekh, managing partner at SoftBank Investment Advisors.
The Japanese company will have a 65% stake in GreenBox, with Symbotic owning the rest. Greenbox will order Symbotic systems over a six-year period starting in fiscal year 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.
