SoftBank and Symbotic have teamed up to create GreenBox Systems, a joint venture aimed at developing AI-powered warehouses. SoftBank will hold a 65% stake in the venture, with Symbotic owning the rest. The collaboration represents a strategic move by SoftBank to embrace the potential of artificial intelligence amid the excitement surrounding AI advancements.
24 July 2023 – SoftBank Group and supply-chain services provider Symbotic are joining forces to establish GreenBox Systems, a new joint venture aimed at developing AI-powered warehouses. In a combined investment of $100 million, the majority ownership of GreenBox Systems will lie with SoftBank, and the venture has committed to acquiring AI-powered systems worth $7.5 billion for its warehouses from Symbotic. The move comes as SoftBank CEO, Masayoshi Son, plans to shift the conglomerate to “offence mode” in response to the growing excitement around artificial intelligence advancements.
The collaboration between SoftBank and Symbotic will capitalize on the potential of AI and other enabling technologies in supply chains, according to Vikas Parekh, managing partner at SoftBank Investment Advisers.
As part of the deal, SoftBank, an existing investor in Symbotic, will receive warrants representing approximately 2% of the outstanding shares of the U.S. company. Additionally, SoftBank has acquired 17.8 million shares of Symbotic from CEO Rick Cohen.
The newly formed joint venture, GreenBox Systems, is expected to drive significant revenue through the sale of software, parts, and services to the JV, with Symbotic projecting more than $500 million in annual recurring revenue.
GreenBox Systems will be dominated by SoftBank, which will hold a 65% stake, while Symbotic will retain the remaining ownership. Over a six-year period, starting in fiscal 2024, GreenBox will procure Symbotic’s AI-powered systems.
The collaboration between these technology giants showcases the increasing interest and investments in artificial intelligence, especially with the rise of ChatGPT and its impact on various industries. Despite a challenging economic climate, this partnership highlights the growing potential of AI and its transformative effects on supply chains and logistics. – source: Reuters
