SoftBank Group has acknowledged a $3.7 billion loss from revising US data-center power-equipment commitments while rejecting Elon Musk’s allegation that it defaulted on turbine orders, drawing a distinction between costly contract changes and failure to meet contractual obligations.
Musk made the claim in an X post, writing, “SoftBank is defaulting on their turbine orders.” He did not identify a supplier, agreement, payment, or evidence supporting the accusation.
Asked about the post during SoftBank’s earnings briefing Tuesday, Chief Financial Officer Yoshimitsu Goto responded, “There is no such default.” The company said it remained committed to its AI infrastructure projects.
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SoftBank subsidiary Silver Bands 7 had paid a cumulative $9.5 billion from fiscal 2025 through September 2026 to secure manufacturing capacity and power-generation equipment ahead of anticipated supply shortages.
After project requirements changed, $6.6 billion of those payments remained allocated to equipment purchases for the PORTS-Pike development in Ohio and other projects. Another $2.9 billion covered nonrefundable deposits for purchases excluded from revised procurement plans.
Contract modifications and settlements added roughly $0.9 billion in recognized losses. SoftBank’s accounting presentation puts the combined charge at ¥597.2 billion, or approximately $3.7 billion.
SoftBank said it could qualify for rebates of up to $2.1 billion on future purchases, subject to conditions. Cash payments associated with the modification and settlement charges are expected from the following quarter onward.
Goto said the PORTS-Pike project was progressing and was not being discussed for downsizing. The equipment strategy had changed, he explained, as the company reassessed specifications across its broader project portfolio.
The charge contributed to SoftBank’s ¥1.115 trillion, or approximately $7 billion, net loss attributable to shareholders for July through September, reversing a ¥2.502 trillion profit a year earlier.
Financing costs rose to ¥461.9 billion from ¥174.7 billion in the corresponding quarter.
SoftBank raised $56.5 billion during the period as it financed an AI strategy that includes a $64.6 billion cumulative investment in OpenAI, representing approximately 13% ownership.
Shares closed almost 14% higher in Tokyo on Tuesday, but trading ended before the results were released.
