SoftBank loses billions after over-ordering AI energy equipment

SoftBank Group (SOBKY) shares fell 3.04% in Tokyo due to NVIDIA's leadership changes. The company reported a net loss of 768.0 billion yen for the first half of fiscal 2026, down from a 2,924.1 billion yen profit a year earlier. Its net asset value declined to 44.7 trillion yen by November 9, with a loan-to-value ratio of 15.9%. SoftBank's OpenAI investment totals $64.6 billion for about 13% ownership.

SoftBank reported a $3.7B loss on unused turbine orders, denying a default but confirming a $2.9B write-off. Elon Musk had claimed a default on X, causing SoftBank's shares to drop 10.83%. GE Vernova, a supplier, said the move had no impact on its backlog.

SoftBank reported a $7.1 billion quarterly loss, with over $3 billion tied to excess gas turbine orders for AI data centers. The company overpaid and ordered more capacity than needed, leading to significant write-downs. Industry experts note risks in gas generation, but SoftBank's losses may not halt gas power plant development.

SoftBank reported a $7.1 billion quarterly loss, with $3.6 billion tied to over-ordered natural gas turbines. The company, aiming to meet AI power demands, overpaid and over-ordered turbines, according to Noreva's CEO. The loss reflects the AI industry's electricity challenges and grid connection delays.

SoftBank reported a $7 billion loss in Q3, its first in two years, partly due to AI data center investments, including a $3.7 billion loss linked to OpenAI projects. The company's shares have dropped nearly 50% since June. SoftBank has raised $11 billion in junk bonds to fund AI investments, raising concerns about its financial stability.

Apollo Global Management has provided over $15 billion in debt to SoftBank since 2021, supporting its $65 billion investment in OpenAI. The financing includes loans tied to OpenAI's valuation and SoftBank's funds. Apollo is now reassessing its lending approach to AI investments.