SoftBank Reports $7.1 Billion Quarterly Loss Driven by Natural Gas Turbine Over-Ordering
SoftBank has reported a significant quarterly loss of $7.1 billion, with more than half of that figure attributed to losses in its power-generating equipment segment. The company's subsidiary, SB Energy, had aggressively placed nonrefundable deposits on over 13 gigawatts of turbines—roughly 50% more than required—in an attempt to secure supply amidst the surging energy demands of the AI boom. The massive write-down reflects a failed bet by CEO Masayoshi Son to corner the natural gas market for data center power. While hyperscalers initially viewed natural gas as a necessary security blanket against grid delays, shifting strategies toward grid connections and large-scale battery storage may be slowing the anticipated growth of the natural gas sector. Despite these losses, analysts suggest SoftBank's setback is unlikely to trigger mass cancellations of other global gas power projects.
Tickers: $SFTBY
Topics: AI power demand earnings loss energy investment turbine procurement