GoKawiilSoftBank writes off $3.7B after canceling gas turbine orders for AI data centers
SoftBank has taken a $3.7 billion earnings hit after canceling its remaining gas turbine reservations with supplier GE Vernova. The company had previously reserved over 13 gigawatts of turbine capacity intended to power future AI data centers, including a planned $33 billion, 9.2-gigawatt power plant in Ohio tied to an OpenAI data center lease.
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The reversal comes just days after SoftBank denied claims from Elon Musk that it was defaulting on commitments, which may invite further scrutiny of the company's AI infrastructure bets. It suggests SoftBank overestimated near-term demand for turbine capacity relative to the enormous cost of securing it years in advance, raising questions about how firms are pricing speculative AI power buildouts.
- SoftBank canceled remaining gas turbine orders with GE Vernova, taking a $3.7 billion charge.
- The company had reserved over 13 gigawatts of turbine capacity, more than Connecticut's total power generation.
- The cancellation follows SoftBank's denial of Elon Musk's claim that it was defaulting on commitments.
Source: tomshardware.com — Oliver Haslam, 2026-11-11
Published there as: “Softbank loses $3.7 billion on canceled AI data center gas turbine orders days after denying Elon Musk’s claim it was defaulting”
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