Nvidia, SoftBank Target 'Robot Brain' Maker In Potential $14 Billion Deal
SoftBank Group Corp.(OTC:SFTBF) (OTC:SFTBY) and NVIDIA Corp (NASDAQ:NVDA) are in talks to back a major new funding round for a fast-growing robotics artificial intelligence company, highlighting rising investor interest in the sector.
SoftBank and Nvidia are negotiating to invest in Skild AI as part of a funding round exceeding $1 billion, which could value the robotics AI company at roughly $14 billion, Reuters reported Monday, citing familiar sources and a term sheet.
If the deal goes through, Skild's valuation would nearly triple from the $4.7 billion it secured earlier this year during a $500 million Series B round that included participation from Nvidia, LG's venture arm and Samsung, PitchBook data shows.
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Founded in 2023 by former Meta Platforms Inc (NASDAQ:META) Meta AI researchers and backed by Amazon.com Inc (NASDAQ:AMZN) and Lightspeed Venture Partners, Skild AI is working to remove a major barrier to widespread robot deployment by building universal software that acts as a central "brain" for robots.
The company develops foundation AI models that help robots learn perception and decision-making skills using massive data sets.
Robotics remains central to SoftBank CEO Masayoshi Son's long-term strategy, especially after the company acquired the robotics business of ABB for $5.4 billion in October.
Last Wednesday, robotics stocks surged after reports said the Trump administration plans to issue an executive order to accelerate the robotics sector.
Shares of iRobot Inc (NASDAQ:IRBT), Serve Robotics Inc (NASDAQ:SERV), Richtech Robotics Inc (NASDAQ:RR), and Tesla Inc (NASDAQ:TSLA) rose as Commerce Secretary Howard Lutnick met with industry CEOs and pushed to speed up industry growth.
The U.S. Department of Commerce said robotics and advanced manufacturing sit at the center of efforts to bring critical production back to the U.S., while the U.S. Department of Transportation moves closer to launching a robotics working group.
Lawmakers are also stepping up interest, with Republicans advancing new proposals after a national robotics commission was left out of the defense bill.
The policy push reflects a broader strategy to compete in AI and other critical technologies, even as Trump and Elon Musk promoted sharply different approaches to managing the growing national debt.
NVDA Price Action: Nvidia shares were up 1.11% at $184.43 at the time of publication on Monday, according to Benzinga Pro data.
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