SoftBank takes massive losses on power equipment bets

SoftBank had put down massive nonrefundable deposits for power-generating equipment and turbines through its SB Energy subsidiary, heavily over-ordering to secure supplies amidst the AI boom. However, the firm announced a quarterly loss of $7.1 billion, with over half tied to these power-generating equipment expenses as the bet fizzled. While AI data center operators initially turned to natural gas as an energy security blanket due to grid connection delays, experts note that risks like winter curtailments remain. Despite SoftBank's losses, the broader natural gas market for AI power demand is unlikely to see mass cancellations, though SoftBank's aggressive push may have reached its ceiling.