SoftBank swings to a $7 billion quarterly loss on a $3.7 billion AI turbine writedown

SoftBank Group swung to a net loss of ¥1.12 trillion (about $7.0 billion) for the quarter ended September 30, 2026, against a ¥2.5 trillion profit a year earlier — its first quarterly loss in nearly two years. The main cause was a ¥597.2 billion (about $3.7 billion) writedown on power-generation equipment it had pre-ordered for AI data centers in the United States.

More than 13 gigawatts of turbines reserved

The writedown came from Silver Bands 7, a SoftBank unit set up to secure power-generation capacity. Between late 2025 and early 2026 it reserved more than 13 gigawatts of gas-turbine manufacturing capacity, largely with GE Vernova, to guarantee electricity supplies for US data centers — more than the 9.2 gigawatts needed for its Ohio project. As project specifications were revised, the unit cancelled the surplus reservations and unwound some contracts, triggering the charge. Over 18 months it had paid ¥1.50 trillion ($9.48 billion) in advances for the equipment.

Two parts to the charge; the Ohio project goes on

The ¥597.2 billion charge breaks down into ¥457.0 billion ($2.85 billion) of non-refundable advance payments and ¥140.2 billion ($0.88 billion) of contract modifications and settlements. SoftBank said about $6.6 billion of the advances remains allocated to the PORTS-Pike campus in Ohio — leased to OpenAI for 20 years, with Nvidia providing credit support for 4.25 gigawatts — and other sites, and that it may earn rebates of up to $2.1 billion on future equipment purchases over 10 years, which it has not booked. Chief financial officer Yoshimitsu Goto said the company is not discussing downsizing the Ohio project.

Musk's “default” claim, denied by SoftBank

Tesla chief executive Elon Musk wrote on X on November 6 that “SoftBank is defaulting on their turbine orders”; SoftBank denies any default. SoftBank also reported quarterly revenue of ¥2.22 trillion, above the ¥2.02 trillion analysts had expected. The episode points to a wider risk in the AI buildout: companies are paying billions in advance to secure scarce power equipment and computing capacity, and when project designs change, the losses run into the billions. SoftBank has invested $65 billion in OpenAI, tying its fortunes ever more closely to the success of AI infrastructure.

(Sources: SoftBank Group financial report; Financial Times; The Wall Street Journal; CNBC.)