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, SoftBank had reserved more power generation capacity than the entire state of Connecticut after cornering a significant portion of global gas turbine production. The company's founder and CEO Masayoshi Son had believed this massive capacity would be crucial to future earnings.

According to the Wall Street Journal, citing unnamed sources familiar with the orders, SoftBank had reserved over 13 gigawatts of power-producing turbines. This capacity exceeds the output of more than six Hoover Dams combined.

The cancellation comes shortly after SoftBank publicly denied Elon Musk's claim that the company was defaulting on its obligations. The financial impact represents one of the most significant losses for SoftBank in recent years.