Key points
- GE Vernova shares swing on SoftBank's equipment loss
- GE Vernova still calls SoftBank a valued customer
- Why JPMorgan sees GE Vernova's turbine slots refilling
GE Vernova (GEV) shares fell as much as 9.9% on Nov. 10 after SoftBank Group (SFTBY) reported a 597.2 billion yen ($3.73 billion) loss tied to power equipment for US AI data centers. The turbine maker's shares recovered to close at $797.04, down 3.9% and at their high for the day.
SoftBank said the loss followed a change in its equipment procurement plans, but it didn't name its suppliers. GE Vernova supplies gas turbines for SoftBank's Ohio data center project, according to CNBC.
GE Vernova said SoftBank remains a valued customer and that SoftBank's disclosure had "no negative or positive financial impact" on the company.
SoftBank lost $2.85 billion in advance payments
The loss sits with Silver Bands 7, a unit that SoftBank Group and its second Vision Fund have invested in. From April 2025 through September 30, Silver Bands 7 paid 1.50 trillion yen ($9.48 billion) to reserve factory capacity and buy power generation equipment for US AI data centers, including the PORTS-Pike Technology Campus in Pike County, Ohio.
Of the 597.2 billion yen loss, 457.0 billion yen ($2.85 billion) is advance payments that can't be refunded. The other 140.2 billion yen ($0.88 billion) covers contract changes and settlements with suppliers. Silver Bands 7 also became entitled to rebates of up to $2.1 billion on future equipment purchases over the next 10 years, if certain conditions are met. SoftBank didn't count the rebates as an asset.
SoftBank has no plans to downsize the Ohio project, but it is conducting a "thorough reassessment" that includes a review of its procurement strategy, Chief Financial Officer Yoshimitsu Goto said on the earnings call. On Nov. 6, Elon Musk wrote on X that SoftBank was defaulting on its turbine orders. Goto called that "simply not correct at all." SoftBank also reported a $7 billion loss for the July-to-September quarter.
GE Vernova says its turbine slots will keep selling
GE Vernova said buyers are already booking turbines for delivery well into the next decade. "Customers are securing slots further into the 2030s, and as we've said, we've sold slots for 2032 delivery, and we expect all slots through 2030 to be mostly sold by the end of 2026. SoftBank's announcement has no impact on that," the company said.
In a note to clients on Nov. 10, JPMorgan wrote that if any delays or cancellations occur, GE Vernova could shift the order to waiting customers.
GE Vernova's gas equipment backlog and slot reservation agreements grew from 116 to 122 gigawatts in the third quarter. Of the 122 gigawatts, 64 were firm orders in backlog and 58 were slot reservations, agreements that hold a place on the production line ahead of a firm order. Some data center builders have turned to converted jet engines rather than wait for new turbines.
Bloom Energy fell too
Bloom Energy (BE), which sells fuel cells that data centers use for onsite power, closed down 4.4% at $185.42 the same day. GE Vernova's 3.9% drop came a day after its shares rose 7.1%.
Dollar figures for the 597.2 billion yen loss and its two parts are SoftBank's own conversions, at its average rate for the July-to-September quarter of 160.12 yen per dollar. Closing prices are from Nasdaq.
