Softbank Takes $3.7B Loss After Canceling Gas Turbines

Softbank has taken a $3.7 billion financial hit after canceling its massive reservations for gas turbines meant to power future AI data centers. The decision follows claims by Elon Musk that the company had defaulted on the orders, which Softbank firmly denied.

Softbank had previously reserved more than 13 gigawatts of power-producing gas turbines from supplier GE Vernova to secure equipment in anticipation of shortages for upcoming AI data center projects, including a planned plant in Ohio. However, the company has now chosen to cancel its remaining reservations and unwind existing contracts, resulting in a $3.7 billion hit to its earnings. The cancellation comes shortly after xAI CEO Elon Musk claimed on social media that Softbank had defaulted on unrequired data center turbines. Softbank Chief Financial Officer Yoshimitsu Goto strongly denied the allegation, stating that the move was entirely voluntary and that no default had occurred.

Softbank absorbs $3.7B loss after canceling massive gas turbine orders