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The story
On November 6, American entrepreneur Elon Musk posted on X that “SoftBank has defaulted on its gas turbine orders.” In response, SoftBank Group executive managing officer Yoshimitsu Goto denied this as “completely baseless” at the company’s earnings briefing on the 10th, explaining that its AI-related plans remain on track. On 5ch forums, users debated whether the claim was true, the backdrop of Musk’s rivalry with OpenAI, and the broader difficulty of securing power for data centers.
Musk posts on X that “SoftBank has defaulted”; SoftBank Group denies it as “baseless” at earnings briefing : Yomiuri Shimbun
At the earnings briefing on the 10th, SoftBank Group (SBG) executive managing officer Yoshimitsu Goto denied American businessman Elon Musk’s post on X (formerly Twitter) claiming that “SoftBank has defaulted on its turbine orders,” calling it “completely baseless.”
Musk’s post was made on the 6th of this month. The turbines in question are used in power-generation equipment that supplies electricity to data centers. Goto said, “We have no idea why that kind of post was made,” and stressed that the company has not defaulted and that its AI-related plans are continuing as scheduled.
Source: yomiuri.co.jp / Original article here
What people said
SoftBank's subsidiary (Silver Bands 7) scaled back and adjusted its procurement plans for power-generation gas turbines (including units made by GE Vernova) that had been intended for AI data centers in places like Ohio, and as a result booked a loss of roughly ¥600 billion (about $3.7 billion) tied to non-refundable deposits and contract changes.
While this doesn't technically amount to a legal "default" (breach of contract), it appears Musk got early wind of the fact that SoftBank was unable to take delivery of the turbines as originally planned and was forced into renegotiating — and was quick to expose it.
Basically, they broke the deal.
The fine details depend on the contract though, so outsiders can't really know.
I see.
Sounds like SoftBank actually had the right to cancel.
But the order disappearing is what set Musk off.
That's just the only move Musk knows how to make.
I think Son's a piece of work too, but man, this is rough.
They're not a generator manufacturer, are they?
Their subsidiary SB Energy is an energy company.
Every major player is pouring huge money into power generation right now.
Have you not noticed?
He's not worked up — he's gloating that a rival is stumbling over power supply.
That's just how America is.
Or is it actually true?
In Japan, defamation can hold up easily whether the statement is true or false.
Overseas, true statements aren't defamation, and even false ones don't hold up easily.
That's why foreigners talk trash so boldly about everything.
Their freedom is actually protected.
The PHP thing was pretty huge.
Unlike Trump, this guy actually nails it bluntly sometimes.
SoftBank's got some nerve saying that — on top of teaming up with TBS, they've attacked me for money whenever something came up.
The one he's going to crush is OpenAI.
The one that's finished is the Digital Agency, lol.
Under Japanese law, that should be out of bounds.
Is it fine in America though?
Or was it not actually Elon Musk, but someone impersonating him?
A default is a default.
It's just that no legal liability remains because the cancellation fee was properly paid.
Unlike Japan, it's a country that's lax on harassment, so it's probably not an issue there.
Like saying to Minna no Ōyasan (a Japanese real-estate investment fund that later collapsed), "Hey, you okay? You look like you're about to go under" — and then it actually does go under. Guess that's fine too.
Right now they're both headed in a bad direction.
Mr. Leather Jacket (nickname for SoftBank's Masayoshi Son) is already in pretty rough shape, lol.
Bottom line, there's just nowhere near enough power, lol.
And since he ran them before getting state approval,
it's become a problem now.
Also, isn't it coal power, so there's pollution coming from it?
Japanese companies hold about 70% of the market share, but there's a long waiting line, and delivery apparently won't happen for years.
If revenue projections keep getting pushed back, you end up having to borrow money just to pay off other debt.
But nobody wants to lend money into that kind of situation.
Running in the red is intentional too.
Found Shinjiro (Koizumi) — that circular, saying-nothing logic, lol.
The investment business only works by moving money around — didn't you know that?
This is way too bad.
Japan might really be finished.
Some countries are surging though…
Background and Key Points of This Topic
The friction between Musk and SoftBank stems partly from the relationship between OpenAI — which Musk helped co-found before later leaving — and SoftBank, which continues to make major investments in it. Demand for electricity at AI data centers has surged, and orders for power-generation gas turbines and transformers are reportedly booked out years in advance, with companies competing fiercely to secure supply. In the thread, some speculated that SBG’s subsidiary scaling back its turbine delivery plans might be the basis for the word “default,” but whether this amounts to a legal breach of contract or a contract change already settled via a cancellation fee can’t be determined from the original article or the 5ch discussion alone. It’s also worth noting — and easily misunderstood — that the legal threshold for liability over defamation or social-media statements differs between Japan and the US, so the same remark can carry very different consequences depending on where it’s made.
*This article is compiled as an excerpt and summary of the 5ch (News Bulletin+) thread “Musk posts on X that ‘SoftBank has defaulted’; SoftBank Group denies it as ‘baseless’ at earnings briefing.”
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