TechCrunch: SoftBank’s loss of more than $3 billion may cap AI gas ambitions

SoftBank announced a $7.1 billion quarterly loss, with more than half coming from losses related to power-generation equipment. According to TechCrunch, the company had made nonrefundable deposits to reserve more than 13 gigawatts of natural gas turbines—almost 50% more than it needed—but later considered much of that money worthless, resulting in a loss of more than $3 billion. The publication says the decision was intended to secure equipment in a market where order queues now extend into the early 2030s.

TechCrunch says the loss may put a ceiling on natural gas ambitions to supply AI data centers, although it is unlikely to trigger mass cancellations. Brent Nelson of Ascend Analytics told the Equity podcast that smaller grid connections combined with large batteries could be a more cost-effective option and help avoid the risk of winter gas-supply curtailments.