SoftBank's $7.1B loss from over-ordered natural gas turbines dims AI power ambitions
SoftBank's aggressive $33 billion investment in a 9.2-gigawatt natural gas power plant and over-ordering of more than 13 gigawatts of turbines—nearly 50% more than needed—has led to a $7.1 billion quarterly loss. This loss, mainly from power-generating equipment deposits considered worthless, reflects the risks of betting heavily on natural gas as the energy solution for AI data centers amid long grid connection wait times. Industry analysts now suggest that connecting AI data centers to the grid with supplemental battery storage might be more cost-effective, possibly causing slower growth in the natural gas market than SoftBank anticipated. While SoftBank's losses are significant, the overall demand for AI power suggests no immediate mass cancellations of gas power plants.
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SoftBank's $7.1B loss from over-ordered natural gas turbines dims AI power ambitions
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SoftBank's aggressive $33 billion investment in a 9.2-gigawatt natural gas power plant and over-ordering of more than 13 gigawatts of turbines—nearly 50% more than needed—has led to a $7.1 billion quarterly loss. This loss, mainly from power-generating equipment deposits considered worthless, reflects the risks of betting heavily on natural gas as the energy solution for AI data centers amid long grid connection wait times. Industry analysts now suggest that connecting AI data centers to the grid with supplemental battery storage might be more cost-effective, possibly causing slower growth in the natural gas market than SoftBank anticipated. While SoftBank's losses are significant, the overall demand for AI power suggests no immediate mass cancellations of gas power plants.