SoftBank Cancels 13GW of AI Data Center Power, Loses Billions on Gas Turbine Orders

SoftBank has reportedly canceled 13 gigawatts of reserved power for AI data centers and incurred a $3.7 billion loss on canceled gas turbine orders, a move that comes just days after the company denied claims of defaulting. This significant reduction in power commitment, equivalent to more than six Hoover Dams, signals a potential cooling or restructuring of ambitious AI infrastructure plans.

The development follows a period of intense activity and investment in the AI sector, with TSMC announcing a $1 billion investment in AI companies Anthropic and OpenAI, and a new venture fund, Proximal Ventures, raising $27.5 million to back AI startups in drug development. Meanwhile, Microsoft has surpassed Nvidia in market capitalization, underscoring the shifting dynamics in the AI chip and technology race.

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Sources

  1. Softbank loses $3.7 billion on canceled AI data center gas turbine orders days after denying Elon Musk’s claim it was defaulting — company kills reserved 13 gigawatts of power, more than six Hoover Dams’ worth of capacity — Reddit - World News,
  2. Taiwan’s chipmaking giant TSMC to invest $1B in Anthropic, OpenAI — Ars Technica,
  3. Proximal Ventures raises debut fund to back startups bringing AI to drug development — TechCrunch,
  4. Microsoft tops Nvidia's market cap for first time since June 2025 — Reddit - Artificial Intelligence,
  5. JUST IN: Microsoft officially overtakes NVIDIA to become the world's second most valuable company by market cap. — Reddit - Technology,
#softbank #ai #data-center

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