SoftBank Takes $7.1B Quarterly Loss as AI Power Turbine Bet Backfires
By James Dargan · · 1 min read
SoftBank has reported a $7.1 billion quarterly loss, with more than half linked to power-generating equipment, after its bid to corner the natural gas turbine market for AI data centres fell short.
Starting about two years ago, the group reportedly placed deposits on more than 13 gigawatts of turbines, almost 50% more than it needed. CEO Masayoshi Son bet that, as natural gas emerged as a key power source for the AI boom and turbine queues stretched into the early 2030s, SoftBank could control enough supply that AI developers would have to come to it. The company now considers much of its nonrefundable deposits worthless.
Peter Gardett, CEO of Noreva, said SoftBank’s SB Energy had little choice but to overbook if it wanted turbines quickly, describing the charge as costly price discovery finally taking place.
Brent Nelson of Ascend Analytics said natural gas carries risks such as winter curtailments, and that most data centres would be better served by a smaller grid connection supplemented with large batteries to manage peak loads.
Despite SoftBank’s losses, AI’s power demand remains too large to trigger widespread cancellations of gas plants.
