SoftBank posts $7.1 billion quarterly loss, gas turbine deposit impairment exceeds $3 billion
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SoftBank reports $7.1 billion quarterly loss, with more than half coming from power generation equipment-related losses and gas turbine-related losses exceeding $3 billion. About two years ago, SoftBank began paying non-refundable deposits for more than 13 gigawatts of gas turbines, nearly 50% more than its own needs. Analysts believe this reflects that after AI data center power demand pushed up gas turbine orders, the market has begun to reassess the actual pace of natural gas power generation.
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- TechCrunch · AISoftBank’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.
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