SoftBank takes $3.7 billion hit after over-ordering turbines for AI data centers

The writedown stems from cancellations of gas turbine orders placed to power AI data centers in the United States. The charge pushed SoftBank to a net loss of ¥1.12 trillion ($7 billion) for its fiscal second quarter ending September 30, 2026.

Turbine shopping spree consequences

The loss traces back to SoftBank's subsidiary Silver Bands 7 LLC, which reserved more than 13 gigawatts of gas turbines between late 2025 and early 2026. This exceeded the 9.2-gigawatt capacity needed for the Ohio facility leased by OpenAI.

As project specifications evolved, SoftBank canceled the surplus orders. By September 30, cumulative advance payments for US power generation equipment had reached $9.48 billion, with the cancellations resulting in the $3.7 billion charge.

SoftBank denied claims that it had defaulted on the turbine contracts, framing the cancellations as a response to changing project needs, not a failure to pay.

Continued AI investments despite losses

The quarterly loss marks SoftBank's first in nearly two years, with the turbine writedown and high financing costs in volatile markets contributing to the result. However, the company has not slowed its AI ambitions.

SoftBank has made a $64.6 billion acquisition of a 13% stake in OpenAI and announced a $1.85 billion commitment to build AI infrastructure in Malaysia. The company holds rights to conditional rebates of up to $2.1 billion on future turbine purchases.

Investors should watch whether SoftBank uses these rebates, how the OpenAI-linked Ohio campus progresses with the adjusted equipment orders, and whether other large AI infrastructure buyers report similar cancellations in coming quarters.