SoftBank Group recorded a ¥597.2 bn ($3.7 bn) writedown after cancelling surplus gas turbine orders intended to supply electricity to artificial intelligence data centers in the United States.
The charge contributed to a ¥1.12 tn ($7 bn) net loss for the fiscal second quarter ended September 30, 2026, marking the Japanese technology investment group’s first quarterly loss in nearly two years.
- SoftBank Group reported a ¥1.12 tn ($7 bn) net loss for its fiscal second quarter ended September 30, 2026, including a ¥597.2 bn ($3.7 bn) writedown related to cancelled gas turbine orders.
- The company reserved more than 13 GW of gas turbine capacity for US AI infrastructure projects, exceeding the 9.2 GW required for its Ohio data center facility linked to OpenAI.
- SoftBank had made $9.48 bn in cumulative advance payments for US power equipment by September 30 and retains conditional rights to rebates of up to $2.1 bn on future purchases.
SoftBank had reserved more than 13 gigawatts (GW) of gas turbine manufacturing capacity between late 2025 and early 2026, seeking to secure electricity generation equipment ahead of competing AI infrastructure developers.
The contracted capacity ultimately exceeded the requirements of its planned 9.2 GW facility in Ohio, leading the company to cancel orders that were no longer needed following revisions to project specifications.
The cancellations resulted in a substantial accounting charge, although SoftBank retains conditional rights to rebates worth up to $2.1 bn against future turbine purchases.
Why SoftBank cancelled $3.7 bn in gas turbine orders
The equipment reservations were arranged through Silver Bands 7 LLC, a SoftBank subsidiary established to secure manufacturing capacity for power generation equipment.
As demand for AI computing infrastructure increased, access to reliable electricity became an important consideration for companies planning large-scale data center developments.
Gas turbines can provide dedicated electricity generation capacity for facilities whose power requirements exceed the availability or delivery schedules of existing electrical grids.
SoftBank moved to secure more than 13 GW of turbine capacity, equivalent to over six times the power generation capacity of the Hoover Dam.
The reservations were linked to the company’s broader US AI infrastructure ambitions, including the PORTS-Pike Technology Campus in Ohio.
The campus, associated with a 9.2 GW development, is leased by OpenAI and forms part of the infrastructure planned to support expanding AI computing requirements.
As technical specifications and equipment requirements changed, SoftBank determined that some of its advance turbine orders were unnecessary.
Cancelling those commitments produced the ¥597.2 bn writedown recognized in its quarterly financial results.
By September 30, cumulative advance payments for US power generation equipment had reached $9.48 bn.
The company may recover part of the economic value associated with cancelled reservations through conditional rebates of up to $2.1 bn on future equipment purchases. The eventual benefit depends on subsequent procurement decisions and the applicable rebate conditions.
SoftBank denies defaulting on turbine contracts
The cancellations followed public allegations that SoftBank had defaulted on contracts involving turbine equipment.
Ahead of its earnings announcement, the company’s chief financial officer rejected those claims, stating that “there is no such default.”
SoftBank characterized the cancellations as adjustments to changing infrastructure requirements rather than failures to meet contractual payment obligations.
The distinction matters because the writedown reflects the financial consequences of excess equipment reservations, rather than a confirmed inability to pay suppliers.
SoftBank founder and CEO Masayoshi Son had pursued turbine manufacturing capacity as an important resource for the company’s AI infrastructure strategy.
The original commitments were intended to reduce exposure to manufacturing bottlenecks at a time when large technology companies were competing for equipment needed to power high-density computing facilities.
Revisions to the Ohio project ultimately left SoftBank with commitments beyond its immediate equipment requirements.
AI infrastructure costs contribute to quarterly loss
SoftBank’s ¥1.12 tn quarterly net loss was affected by the turbine writedown and elevated financing costs during a period of volatile financial markets.
The ¥597.2 bn charge accounted for a substantial portion of the reported loss, although it was not the company’s only negative financial item.
The result illustrates the financial exposure associated with securing infrastructure equipment before the final requirements of large AI projects are established.
Gas turbines are particularly sensitive to procurement timing because manufacturing capacity must often be reserved well ahead of installation.
In SoftBank’s case, advance reservations provided access to power generation equipment but also created financial commitments that became costly when project specifications changed.
The company has not indicated that the cancellations represent a withdrawal from its broader AI investment strategy.
SoftBank maintains major investments in OpenAI and AI data centers
Despite the quarterly loss, SoftBank continues allocating substantial capital to artificial intelligence companies and infrastructure.
The group has made a $64.6 bn investment to acquire a 13% stake in OpenAI, extending its financial exposure to one of the largest developers of generative AI technology. It has also announced a $1.85 bn commitment to develop AI infrastructure in Malaysia.
These investments demonstrate that SoftBank’s spending extends beyond US data center electricity generation into AI models, computing infrastructure and international development projects.
The Ohio facility remains relevant to the company’s infrastructure plans, although the cancellation of surplus turbine orders changes the amount of equipment currently committed to the development.
Future financial effects will depend partly on whether SoftBank uses its conditional turbine rebates and whether revised project requirements lead to additional procurement.
The company has not disclosed how much of the potential $2.1 bn rebate entitlement it expects to realize. Further changes to the Ohio campus specifications could also affect the timing and scale of future equipment purchases.
