SoftBank Group Corp (SFTBF) (SFTBY) and NVIDIA Corp (NVDA) are getting ready to write some very large checks to a robotics startup you've probably never heard of. The two tech giants are negotiating to back a massive funding round for Skild AI that could value the young company at roughly $14 billion, according to a Reuters report citing sources familiar with the matter and a term sheet.

The funding round would exceed $1 billion, and if it closes, Skild's valuation would nearly triple from the $4.7 billion it commanded earlier this year. That earlier round, a $500 million Series B, already had some heavy hitters involved, including Nvidia, LG's venture arm, and Samsung, according to PitchBook data.

So what exactly does Skild AI do that's worth $14 billion? The company is tackling one of the biggest headaches in robotics: getting robots to actually work in the real world without needing custom programming for every single task. Skild builds what you might call a universal operating system for robots, foundation AI models that help machines learn perception and decision-making skills by training on massive datasets. Think of it as building a central "brain" that different robots can plug into, rather than each robot needing its own bespoke software.

The Team Behind the Tech

Skild AI was founded in 2023 by former Meta Platforms Inc (META) AI researchers who presumably got tired of working on algorithms to show you more cat videos and decided to build actual robot brains instead. The startup has already attracted backing from Amazon.com Inc (AMZN) and Lightspeed Venture Partners, which tells you something about how seriously Silicon Valley is taking the robotics opportunity.

For SoftBank CEO Masayoshi Son, this deal fits squarely into his long-term robotics obsession. The company went all-in on the sector last October when it acquired ABB's robotics business for $5.4 billion. Son has been vocal about his belief that robots and AI will reshape the global economy, and he's putting his money where his mouth is.

Robotics Gets a Political Boost

The timing of this potential deal is interesting. Last Wednesday, robotics stocks jumped after reports emerged that the Trump administration is preparing an executive order to accelerate growth in the robotics sector. Shares of iRobot Inc (IRBT), Serve Robotics Inc (SERV), Richtech Robotics Inc (RR), and Tesla Inc (TSLA) all rose as Commerce Secretary Howard Lutnick met with industry CEOs to push for faster industry expansion.

The U.S. Department of Commerce has made it clear that robotics and advanced manufacturing are central to efforts to bring critical production back to American soil. Meanwhile, the Department of Transportation is moving closer to launching a robotics working group, and lawmakers are stepping up their interest in the sector. Republicans are advancing new proposals after a national robotics commission got left out of the defense bill.

The policy push reflects a broader strategy to keep the U.S. competitive in AI and other critical technologies. It's part of the same conversation happening around semiconductors, quantum computing, and other areas where Washington increasingly sees national security implications, even as Trump and Elon Musk publicly spar over competing approaches to managing the national debt.

NVDA Price Action: Nvidia shares were up 1.11% at $184.43 at the time of publication on Monday, according to market data.