SoftBank reported a $7.1 billion quarterly loss, with over half of the total stemming from its power-generating equipment division. The company wrote off more than $3 billion in nonrefundable deposits for natural gas turbines. This financial hit comes as the firm faces significant challenges in its energy investments.
The company reportedly ordered more than 13 gigawatts of turbines, which is nearly 50% more than it actually needed. CEO Masayoshi Son previously bet $33 billion on a 9.2-gigawatt natural gas power plant. Peter Gardett, CEO of Noreva, stated that the write-off was a necessary ‘price discovery’ process to clear the market.
Long wait times for turbine orders extend into the early 2030s due to the surging power demands of artificial intelligence. This backlog highlights the immense strain on energy infrastructure as the tech sector expands rapidly. Investors should monitor how these supply chain bottlenecks impact the broader rollout of data centers and AI infrastructure.
