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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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Softbank loses $3.7 billion on canceled AI data center gas turbine orders days after denying Elon Musk’s claim it was defaulting

By early 2026, Japanese tech investment outfit SoftBank had reserved more power generation capacity than the entire state of Connecticut after cornering a huge portion of the global gas turbine production capacity. Now, the same company has chosen to take a $3.7 billion hit to its earnings after canceling reservations for the highly sought-after power generation hardware. The WSJ reports that SoftBank had reserved more than 13 gigawatts of power-producing turbines, citing unnamed "people familiar with the orders." That's the equivalent of more than six Hoover Dams' worth of capacity, with SoftBank founder and chief executive Masayoshi Son believing that it would be vital to the company's earning potential moving forward.

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The gas turbines were to power AI data centers, and SoftBank is set to build a 9.2-gigawatt power plant in Ohio, with construction scheduled for early 2027. It'll cost $33 billion to build and will provide power to a neighboring eight-gigawatt data center. That data center will be leased to OpenAI, albeit only after Nvidia entered discussions about guaranteeing around $250 billion of financing for the project.


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