Business · Companies · 4 hrs ago
SoftBank takes $3.7bn hit on canceled gas turbine orders
SoftBank took a $3.7bn charge after canceling reservations for gas turbines intended to power AI data centers.
The Japanese investment group, led by Masayoshi Son, had placed deposits on more than 13 gigawatts of turbines, according to reports.
That was almost 50% more capacity than it needed, as the company tried to secure equipment amid long waits for turbine orders.
The deposits were nonrefundable, and SoftBank now considers much of the money spent on them lost.
The loss highlights the risks of betting heavily on natural gas as a power source for AI facilities.
Data center operators may instead rely more on grid connections and batteries, though gas remains in demand.
The charge is unlikely to trigger mass cancellations of gas power projects, and no further steps by SoftBank are stated.
SoftBank took a $3.7 billion hit after canceling reservations for gas turbines intended to supply power for AI data centers.
The company had reserved more than 13 gigawatts of turbines, according to reports cited by the articles.
SoftBank had paid nonrefundable deposits to secure the orders, and it considered much of those deposits worthless.
The orders exceeded SoftBank’s needs, as turbine supply queues stretched into the early 2030s.
The loss came as the company reassessed its bet on natural gas to meet rising demand for AI power.
- Who
- SoftBank, the Japanese technology investment company led by Masayoshi Son.
- What
- It took a $3.7 billion hit after canceling gas turbine reservations.
- When
- The articles reported the loss on November 11–13, 2026.
- Where
- The turbine orders were for power generation; a specific location is not stated.
- Why
- SoftBank had ordered more turbines than it needed, and it treated much of the nonrefundable deposits as worthless after canceling reservations.
SoftBank CFO
Elon Musk
Turbine contract status
SoftBank CFO
SoftBank’s CFO said there was no default on turbine blade contracts.
Elon Musk
Musk claimed SoftBank had defaulted on turbine blade contracts.
SoftBank made a $30 billion bet on OpenAI.
SoftBank reportedly began placing deposits on turbine orders totaling more than 13 gigawatts.
SoftBank announced that its SB Energy subsidiary would spend $33 billion on a 9.2-gigawatt natural gas power plant.
SoftBank announced a $7.1 billion quarterly loss, with more than half linked to power-generating equipment.
Articles reported SoftBank’s $3.7 billion hit after it canceled turbine reservations.
- Loss
- $3.7 billion
- Turbine reservations
- More than 13 gigawatts
- SB Energy gas plant plan
- $33 billion for a 9.2-gigawatt plant
- Quarterly loss
- $7.1 billion
- OpenAI investment
- $30 billion in early 2025
4 sources
SoftBank’s failed bet on gas turbines for AI drove $3.7bn charge
SoftBank’s billion-dollar loss may have put a cap on AI’s natural gas ambitions
Everything is going wrong for SoftBank
Softbank loses $3.7 billion on canceled AI data center gas turbine orders days after denying Elon Musk’s claim it was defaulting
What people are saying
SB Energy did not have a choice except to overbook turbines in the future if they wanted some turbines right away
This charge is just that price discovery finally happening
there is no such default