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Archive photo · 7 March 2021SoftBank Books $3.7 Billion Writedown After Cancelling Surplus US AI Data Center Turbine Orders
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SoftBank booked a ¥597.2 billion ($3.7 billion) writedown after canceling US AI data-center turbine orders. Net loss for fiscal Q2 reached ¥1.12 trillion ($7 billion).
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Writedown after turbine over-order
SoftBank Group booked a ¥597.2 billion ($3.7 billion) writedown after cancelling surplus gas turbine orders intended to supply electricity to artificial intelligence data centers in the United States. SoftBank’s charge contributed to a ¥1.12 tn ($7 bn) net loss for the fiscal second quarter ended September 30, 2026, which marked the Japanese technology investment group’s first quarterly loss in nearly two years. SoftBank had reserved more than 13 gigawatts of gas turbine manufacturing capacity between late 2025 and early 2026, but the contracted capacity exceeded the requirements of its planned 9.2 GW facility in Ohio.
SoftBank’s equipment reservations were arranged through Silver Bands 7 LLC, a SoftBank subsidiary established to secure manufacturing capacity for power generation equipment. SoftBank said it retained conditional rights to rebates worth up to $2.1 bn against future turbine purchases, even as it cancelled the surplus orders.
Musk default claim denied
Elon Musk wrote on X that "SoftBank is defaulting on their turbine orders," and SoftBank’s CFO Yoshimitsu Goto responded that "This is simply not correct at all.
There is no such default." SoftBank reserved well in excess of 13 gigawatts of gas turbines for US data-centre power plants and cancelled excess reservations as further payments loomed.
Reuters Breakingviews said SoftBank’s reservations exceeded 13 gigawatts’ worth, more than needed for existing projects, and Reuters Breakingviews described the move as a scaled-down reservation problem tied to a $3.7 billion charge.
SoftBank announced a $7 billion quarterly loss on Tuesday, with over half stemming from losses related to power-generating equipment.
Peter Gardett, CEO of Noreva, said "SB Energy did not have a choice except to overbook turbines in the future if they wanted some turbines right away."
Ohio campus and investor watch
SoftBank’s Ohio plan tied to the PORTS-Pike Technology Campus in Ohio, which is leased by OpenAI, and SoftBank’s reservations were linked to a 9.2 GW development. Beinsure said the campus is associated with a 9.2 GW development and is leased by OpenAI, while SoftBank had reserved more than 13 GW of turbine capacity that ultimately exceeded its planned needs. A deal announced in March calls for the Japanese government to fund a $33 billion, 9.2-gigawatt gas plant on a former uranium enrichment site in southern Ohio, with SoftBank as builder and operator.
SoftBank may receive rebates of up to $2.1 billion over 10 years on future purchases, but it said SoftBank had not booked them. SoftBank has made a $64.6 bn investment to acquire a 13% stake in OpenAI and announced a $1.85 bn commitment to develop AI infrastructure in Malaysia, keeping its broader AI investment posture in focus even after the turbine writedown.