Elon Musk Claims SoftBank Is Defaulting on Turbine Orders

“SoftBank is defaulting on their turbine orders,” Elon Musk wrote Friday, as shares of SoftBank Group Corp. (OTC:SFTBY) plunged 10.8% amid a wider selloff in AI infrastructure stocks.

Musk was replying to a post by Katie Miller, a conservative podcast host who previously worked as an adviser to Musk. Her post revived his January 2025 claim that SoftBank lacked the money to fund the Stargate AI project.

Miller also shared a Bloomberg report on a data-center loan sale tied to Stargate. Musk offered no evidence to support his new allegation.

Stargate Faces Financing Questions

Dutch bank ING Groep N.V. (NYSE:ING) is trying to sell approximately $500 million in existing loans to data-center developers, Bloomberg reported.

The loans include $25 million tied to a Stargate project in New Mexico, backed by SoftBank, OpenAI and Oracle Corp. (NYSE:ORCL).

Oracle previously sent the site’s developer a force majeure notice, seeking to postpone rent payments if the project misses its planned 2028 opening. Oracle says the project remains on schedule.

Banks often sell loans to free up capital or reduce risk, but ING has not explained its reasons.

Why the Turbine Orders Matter

SoftBank is planning one of the world’s largest AI data-center developments in Ohio, requiring 9.2 gigawatts of gas-fired electricity generation.

The company confirmed in May that it had reserved turbines from manufacturers including GE Vernova (NYSE:GEV) to power the project.

The electricity is needed for data centers leased by OpenAI, with the first facilities scheduled to open in 2028.

Delays in securing power could push back those openings, costing the developer rental income and potentially triggering financial penalties, according to an SB Energy filing.

With gas turbine wait times running as long as seven years, according to S&P Global, any lost orders could threaten SoftBank’s plans to deliver OpenAI’s Ohio data centers from 2028.

Musk has not identified which turbine orders he claims are in default.

SoftBank’s Credit Risk Hits Four-Year High

SoftBank’s debt insurance costs reached 466 basis points Friday, their highest since October 2022, Reuters reported, as investors grew increasingly concerned about its enormous AI spending commitments.

The conglomerate has invested $64.6 billion in OpenAI, while Democrats’ midterm victories have raised fresh concerns that restrictions on data-center construction could delay projects.

Despite the turmoil, Polymarket traders see just an 8% chance of an AI bubble bursting by December 31, rising to nearly 27% by June 30, 2027.

Musk previously questioned Stargate’s financing when the $500 billion initiative was announced in January 2025, prompting a public rebuttal from OpenAI CEO Sam Altman.

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