SoftBank Group is in discussions to acquire a majority stake in 1X Technologies, a humanoid robot developer that has backing from OpenAI. The Information reported on Aug. 26 that the proposed transaction would value the startup at approximately $6 billion. People familiar with the matter stated that talks are continuing and that the final terms could still change.
Reported Stake and Valuation
The potential deal would give SoftBank majority control of 1X Technologies while providing the startup with additional capital for growth. Reports indicate that 1X previously sought to raise $1 billion at a $10 billion valuation last fall but ultimately raised less than half of that target. The current discussions around a $6 billion valuation suggest a more moderate pricing environment for robotics startups.
OpenAI's Existing Relationship with 1X
OpenAI invested in 1X Technologies in 2023 through its OpenAI Startup Fund, alongside Tiger Global and a group of investors based in Norway. Last year, OpenAI and 1X reportedly discussed the possibility of the ChatGPT maker acquiring the startup. SoftBank's current interest would position it as a leading outside investor rather than a strategic acquirer from the technology sector.
SoftBank's Broader Robotics Push
The 1X discussions build on SoftBank's wider push into robotics and automation. The Japanese technology investor agreed last year to acquire Swiss engineering group ABB's robotics business for $5.4 billion. In November, it also invested in Agile Robots, a company that has introduced an industrial humanoid robot and expands SoftBank's presence in the sector.
Neo Humanoid Robot and Consumer Demand
1X Technologies, a 12-year-old startup, began taking preorders for its soft-body humanoid robot Neo at $20,000 per unit in October last year. According to The Information, the company received more than 10,000 orders within a single week. However, it has not yet delivered the robot to customers, underscoring the challenges of scaling production.
Funding History and Valuation Context
Last fall, 1X Technologies sought to raise $1 billion at a valuation of $10 billion, according to the report. The company ultimately raised an amount that was less than half of its original target. A completed deal with SoftBank at around $6 billion would therefore reflect a more moderate valuation while still supporting expansion plans.
Strategic Implications of the Investment
SoftBank Chairman Masayoshi Son has repeatedly highlighted that physical devices combining robotics and artificial intelligence could create the next one trillion dollar company. A majority stake in 1X Technologies would align with that vision by adding a humanoid robot developer to SoftBank's portfolio. It would also give the startup a well-capitalized partner as it moves toward commercialization.
Potential Impact of a Completed Deal
If SoftBank completes the deal, it would gain a controlling position in a startup that has drawn interest from both OpenAI and global investors. The investment would also allow 1X to accelerate development and eventual delivery of its Neo humanoid robot. Such a transaction could reshape competition in the emerging humanoid robotics market.
Confirmation and Ongoing Uncertainty
Reuters could not immediately confirm the discussions between SoftBank and 1X Technologies. SoftBank declined to comment, while 1X did not immediately respond to a request for comment. The people cited by The Information stated that negotiations are ongoing, that terms could still change, and that no final agreement has been announced.
The reported interest in 1X Technologies highlights the growing momentum behind humanoid robotics and artificial intelligence. SoftBank's expanding portfolio, which includes ABB's robotics business and Agile Robots, reflects a strategic bet on physical AI. If completed, the deal would provide 1X with important resources to scale production while strengthening SoftBank's position in a competitive sector.