SoftBank’s billion-dollar loss may have put a cap on AI’s natural gas ambitions

SoftBank reported a $7.1 billion quarterly loss on Tuesday, with more than half stemming from losses on power-generating equipment after it paid nonrefundable deposits on over 13 gigawatts of gas turbines, nearly 50% more than it needed. The over-ordering had helped SB Energy secure turbines quickly amid queues stretching into the early 2030s, but much of the deposits are now considered worthless. The magnitude of the misplaced bet, over $3 billion, reflects the electricity mania around AI, though the losses are unlikely to trigger mass cancellations of gas plants.