Observed Signal · Nov 12, 2026 · Earnings Report · Source: techcrunch · Impact: 4/5 · Sentiment: Negative
SoftBank's $3B Turbine Loss Caps AI Gas Ambitions
SoftBank reported a $7.1 billion quarterly loss, with over $3 billion attributed to nonrefundable deposits on natural gas turbines that it now considers largely worthless. The company had over-ordered turbines, securing more than 13 gigawatts of capacity, nearly 50% more than needed, to expedite its AI data center power projects. This bet on natural gas as a key energy source for AI has fizzled as demand forecasts have softened and alternative solutions like grid connections and battery storage become more attractive. The loss is seen as a costly price discovery for the AI power market, though it is unlikely to trigger mass cancellations of gas plants. Experts suggest data centers may increasingly rely on grid power supplemented by batteries rather than dedicated gas turbines.
SoftBank's significant loss on natural gas turbine deposits highlights the volatile and risky nature of AI infrastructure investments, which could influence how data center power is sourced and affect the broader AI and energy ecosystem.
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Key Takeaways & Evidence Grounding
- SoftBank reported a $7.1 billion quarterly loss on Tuesday, with over $3 billion related to natural gas turbine deposits.
- SoftBank's subsidiary SB Energy ordered more than 13 gigawatts of turbines, nearly 50% more than needed.
- The company paid nonrefundable deposits for turbine orders that it now considers largely worthless.
- Turbine order queues extend into the early 2030s, reflecting high demand for AI data center power.
- Experts suggest data centers may prefer grid connections supplemented by batteries over dedicated gas turbines.
Connected Companies & Entities
“SoftBank announced a $7.1 billion quarterly loss, largely due to losses on natural gas turbine deposits.”
“SoftBank's subsidiary SB Energy announced a $33 billion investment in a 9.2-gigawatt natural gas power plant and over-ordered turbines.”
“SoftBank invested $30 billion in OpenAI in early 2025.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
SoftBank posts $7B loss on U.S. data center and Intel stakes
SoftBank Group reported a fiscal second-quarter net loss of 1.12 trillion yen ($7 billion) on Tuesday, driven by losses related to U.S. AI data center equipment procurement and declining Intel shares. The company recorded a 597.2 billion yen ($3.7 billion) loss in the six months ending Sept. 30 due to changes in procurement plans for power generation equipment for its U.S. AI data center projects. Despite the loss, revenue rose 13.3% in the half-year, supported by growth in telecommunications and AI computing. The Vision Fund segment swung to a loss of 81.58 billion yen, compared with a profit of 2.38 trillion yen a year earlier. SoftBank's cumulative investment in OpenAI stood at $54.6 billion with a fair value of $99.6 billion. The company also announced plans with Grab and Malaysia's PETROS to commit $1.85 billion in initial capital for AI infrastructure in Malaysia, targeting at least 5 GW of AI computing capacity.
SoftBank swings to $7B quarterly loss on US data centre costs
SoftBank Group reported a quarterly net loss of $7 billion for the quarter ended September 30, 2026, driven by costs related to its US data centre operations. The loss reflects significant investments and operational expenses in expanding its AI infrastructure in the United States. This marks a notable financial setback for the Japanese conglomerate, which has been heavily investing in AI and technology ventures. The announcement was made on November 10, 2026, and highlights the financial pressures of scaling data centre capacity.
Anthropic buys $3.4B natural gas turbines for AI power
Anthropic is investing $3.4 billion in natural gas turbines, marking its first major foray into owning physical infrastructure for AI power. The company, which previously leased compute infrastructure, is acquiring Caterpillar generators capable of producing up to 1.7 gigawatts. The deal, reported by the Financial Times and TechCrunch, involves Texas-based OnePWR Solutions, which had originally ordered the turbines but couldn't finance them; Anthropic took over the contract. This is believed to be the largest known single investment by an AI firm in power generation assets. Anthropic's move reflects a broader trend among AI companies securing their own energy supply to mitigate external disruptions. The article also notes that Anthropic has committed to paying $1.25 billion monthly to SpaceX's xAI for compute through May 2029, and discusses the environmental controversy around fracking, which may be driven further by AI's energy demands.
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