SoftBank Group is accelerating its push to place humanoid robots at the core of its artificial intelligence strategy. According to people familiar with the matter, SoftBank is in talks with humanoid robot developer 1X Technologies to acquire a majority stake, with the deal valuing the company at approximately $6 billion. Negotiations are ongoing and terms could still change.

If completed, the deal would provide 1X with ample capital to advance the development and commercialization of its soft-body robots designed for home environments. It would also mark SoftBank’s most substantial bet on humanoid robotics to date.

The $6 billion valuation is a double-edged sword for 1X. According to people familiar with the matter, 1X sought to raise $1 billion at a $10 billion valuation last fall, but ultimately secured less than half of its target. SoftBank’s $6 billion valuation is below 1X’s share price in its previous funding round, yet still far above its $820 million valuation in January 2025—even though the company’s revenue is likely still minimal.

Before SoftBank entered the picture, OpenAI was also a potential buyer. According to people familiar with the matter, OpenAI and 1X discussed a possible acquisition last year, but the talks ultimately did not advance. OpenAI’s ties to 1X date back to 2023, when OpenAI invested in 1X through its OpenAI Startup Fund, which backs early-stage companies and provides them with early access to its models.

OpenAI is not without its own robotics ambitions. In June, OpenAI CEO Sam Altman said at a Y Combinator startup event that he is “very excited” about humanoid robots, citing their potential to accelerate data center construction. However, Caitlin Kalinowski, who led OpenAI’s robotics efforts, departed in March over concerns about the company’s rushed push to work with the U.S. Department of Defense.

Masayoshi Son’s robot obsession

SoftBank CEO Masayoshi Son has long placed bets on robotics, though not without setbacks. SoftBank’s humanoid robot Pepper was discontinued in 2020; in 2021, SoftBank sold 80% of its stake in Boston Dynamics, and in July of this year it sold the remaining shares.

Yet breakthroughs in AI technology have reignited SoftBank’s enthusiasm. Last October, SoftBank acquired the robotics division of Swiss automation giant ABB for $5.4 billion. It has also invested in industrial humanoid robot company Agile Robots and has held acquisition discussions with industrial humanoid robot firms such as Agility Robotics.

Son stated plainly last year: “Physical AI is SoftBank’s next frontier.” He predicted that the combination of AI and physical devices will spawn the next trillion-dollar company. To that end, SoftBank has established a new joint venture, Roze AI, focused on AI and robotics, with plans to take it public later this year or early next year.

1X’s product and technology progress

1X Technologies was founded 12 years ago. Its core product is a soft-body humanoid robot called Neo, positioned for home use and designed primarily to assist with household chores.

Last October, 1X opened pre-orders for Neo at a price of $20,000, with deliveries planned for 2026. According to 1X’s official disclosures, pre-orders exceeded 10,000 units in the first week, but no robots have actually been delivered to consumers to date.

On the technology front, 1X unveiled its “world model” in January—an AI model that controls robots by predicting the next frame of video, an approach gaining increasing attention in the robotics research community. In July, 1X further revealed details of its five-fingered robot hand, which achieves fine motor control through motors in the forearm pulling “tendons” that run through the wrist to the fingers.

If SoftBank completes the acquisition, it would provide sustained funding for 1X’s AI model research and hardware development—both of which require substantial computing resources.

From an industry perspective, the humanoid robot sector is at the intersection of capital-intensive investment and rapid technological iteration. If SoftBank takes control of 1X at a $6 billion valuation, it would not only reshape 1X’s capital structure but could also accelerate the commercialization of home service robots. That said, given that 1X has yet to deliver any products and its revenue remains limited, the payback period and commercialization risks of this deal remain to be seen.