SoftBank posts $7.1 billion loss after $3.7 billion AI power equipment writedown

Covered by 2 sourcesPublished Nov 12, 2026

SoftBank reported a $7.1 billion net loss in the third quarter, driven by a $3.7 billion writedown on prepaid power equipment for U.S. AI data centers. The loss reflects changes and cancellations in plans for a natural gas power plant intended to support AI energy needs, alongside increased interest expenses amid record borrowing.

What happened

SoftBank reported a net loss of $7.1 billion for the third quarter, mainly due to a $3.7 billion writedown on prepaid power equipment intended for US AI data centers. The loss followed the company's decision to change or cancel some of its earlier plans for powering these centers. SoftBank had previously made large nonrefundable deposits on natural gas turbines, aiming to secure enough energy supply for anticipated AI growth. The company also saw its interest expenses double during the period amid high levels of borrowing.

Key details

SoftBank's writedown on power equipment totaled $3.7 billion.
The company reported a $7.1 billion net loss for Q3.
SoftBank had invested $33 billion in a planned 9.2-gigawatt natural gas power plant.
Deposits were made on more than 13 gigawatts of turbines, exceeding actual needs by about 50%.
Interest expenses for SoftBank doubled compared to previous periods.

Why it matters

Investors in SoftBank face immediate financial impacts from the $7.1 billion loss and the costly writedown, which reduces the company's available capital. Data center operators and energy suppliers are affected by the shift in SoftBank's plans, as it changes the demand for natural gas power equipment and may influence future procurement strategies. The increased borrowing costs also put additional pressure on SoftBank's financial stability and its ability to fund large-scale projects.

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