Symbiotic’s A.I.-powered robots autonomously navigate a structure the size of a football field at speeds up to 20+ mph. The company uses artificial intelligence and sophisticated software combined with state-of-the-art robotics to move goods through the supply chain with speed and precision.

SoftBank (TYO: 9984) and supply-chain services provider Symbotic (NASDAQ: SYM) have announced the creation of a joint venture called GreenBox Systems, aimed at constructing AI-powered warehouses. SoftBank, the Japanese technology investor, will hold the majority ownership in the venture. The companies are jointly investing $100 million in this project, and GreenBox Systems has also committed to purchasing AI-powered systems worth $7.5 billion from Symbotic to equip its warehouses.

As part of the deal, SoftBank, which was already an investor in Symbotic, will receive warrants representing approximately 2% of Symbotic’s outstanding shares. In addition, SoftBank has acquired 17.8 million shares of Symbotic from its CEO, Rick Cohen. (Reuters)

The ownership distribution in GreenBox will be 65% for SoftBank and the remaining stake for Symbotic.

The decision to form this joint venture aligns with SoftBank CEO Masayoshi Son’s plan to adopt an “offensive mode” strategy, capitalizing on the advancements in artificial intelligence. According to Vikas Parekh, managing partner at SoftBank Investment Advisers, GreenBox Systems will leverage the potential of AI and other enabling technologies in supply chain operations.

GreenBox will procure Symbotic’s systems over the course of six years starting from fiscal 2024. Symbotic anticipates generating over $500 million in annual recurring revenue through the sale of software, parts, and services to the joint venture.

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