SoftBank Group (9984.T) and supply-chain services provider Symbotic (SYM.O) have teamed up to create AI-powered warehouses under the joint venture GreenBox Systems. The Japanese technology investor, SoftBank, will have a 65% stake in the venture, while Symbotic will own the remaining share. The two companies are collectively investing $100 million in GreenBox Systems, and SoftBank has also signed a deal to purchase AI-powered systems worth $7.5 billion from Symbotic for its warehouses.
As part of the deal, SoftBank will receive warrants representing about 2% of Symbotic’s outstanding shares, in addition to buying 17.8 million shares of Symbotic from CEO Rick Cohen. The announcement has already impacted the companies’ stocks, with shares of Symbotic rising 1.3% and SoftBank closing 1.2% higher on the Tokyo bourse.
The move aligns with SoftBank CEO Masayoshi Son’s plan to shift the conglomerate’s stance to “offense mode” in response to the growing excitement surrounding advances in artificial intelligence. SoftBank Investment Advisers’ Managing Partner, Vikas Parekh, believes GreenBox taps into the powerful potential of AI and other enabling technologies in supply chains.
GreenBox Systems is expected to generate significant revenue from the sale of software, parts, and services, with Symbotic projecting over $500 million in annual recurring revenue from its collaboration with the joint venture.
First reported on Reuters
Frequently Asked Questions
Q. What is GreenBox Systems?
GreenBox Systems is a joint venture formed by SoftBank Group and Symbotic to build AI-powered warehouses. It aims to leverage the potential of AI and other enabling technologies in supply chains to enhance efficiency and productivity.
Q. How much are SoftBank and Symbotic investing in the venture?
Both companies are collectively investing $100 million in GreenBox Systems to develop AI-powered warehouses and optimize supply chain operations.
Q. What will be the ownership structure of GreenBox Systems?
SoftBank will have a 65% stake in the joint venture, while Symbotic will own the remaining 35%.
Q. What are the AI-powered systems that SoftBank is purchasing from Symbotic?
As part of the deal, SoftBank has signed a contract to buy AI-powered systems worth $7.5 billion from Symbotic. These systems are expected to be integrated into SoftBank’s warehouses to enhance their capabilities.
Q. What impact has the joint venture announcement had on the companies’ stocks?
Following the announcement of the joint venture, Symbotic’s shares rose by 1.3%, and SoftBank’s stock closed 1.2% higher on the Tokyo bourse.
Q. What is SoftBank’s broader strategy regarding AI?
SoftBank’s CEO, Masayoshi Son, has indicated that the conglomerate plans to shift its stance to “offence mode” in response to the growing excitement and advancements in artificial intelligence.
Q. What are the revenue expectations from the joint venture?
Symbotic anticipates generating over $500 million in annual recurring revenue from the sale of software, parts, and services to GreenBox Systems.
Featured Image Credit: Unsplash
