Shares of SoftBank Group Corp. (SFTBY) fell 10.83% in Tokyo trading after Elon Musk alleged in a post on X that the company was defaulting on its turbine orders. Musk provided no specific details or evidence, and neither SoftBank nor any turbine manufacturer has confirmed the claim.
The turbines are reportedly gas turbines for an Ohio facility intended to power data centers for the Stargate AI project, a joint venture involving SoftBank, OpenAI, and Oracle.
Musk’s allegation added to investor concerns about financing large-scale AI infrastructure projects. The cost of insuring SoftBank’s debt against default, measured by five-year credit default swaps, rose to its highest level since October 2022.
The sharp market reaction highlights investor sensitivity to signs of financial strain tied to the capital-intensive AI buildout, particularly amid a broader tech selloff.