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Markets
SoftBank’s billion-dollar loss may have put a cap on AI’s natural gas ambitions
SoftBank lost over $3 billion preordering natural gas turbines to power AI data centers. Here's what the loss means to power markets.
SoftBank might not be the first to invest in a hot trend, but when it does, it goes big.
Witness its $30 billion bet on OpenAI in early 2025 or its announcement in February that its SB Energy subsidiary would spend $33 billion on a 9.2-gigawatt natural gas power plant. If you can’t be first, be biggest, I guess.
That philosophy apparently spilled over into procurement, where orders were also supersized. Starting about two years ago, SoftBank reportedly put down deposits on more than 13 gigawatts of turbines, almost 50% more than it needed.
The decision to over-order undoubtedly helped secure turbines and speed up SoftBank’s projects.
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