Crusoe Dumps Boom Supersonic Turbines for AI Power

Overview

Crusoe, the Denver-based AI data center provider that recently secured a massive $3.9 billion funding round, has officially terminated its planned partnership with Boom Supersonic. The two companies had agreed to a significant deal in which Crusoe would serve as the launch customer for Boom’s new line of stationary gas turbines, a move that represented a major pivot for the aviation company.

Under the original agreement, Crusoe committed $1.25 billion to purchase 29 of Boom’s 42-megawatt Superpower turbines. The first units were scheduled for delivery starting in 2027. However, Boom CEO Blake Scholl confirmed on Friday that the partnership has dissolved, marking a setback for Boom’s efforts to diversify beyond its supersonic jet ambitions.

“The TL/DR is that turbines are no longer part of Crusoe’s near term primary power mix at Abilene/etc., so a launch partnership just didn’t make sense,” Scholl wrote in a post on X.

The Deal That Was

The collapsed agreement was a significant milestone for both firms. Crusoe had evolved from its origins as a Bitcoin mining operation powered by excess natural gas into one of the leading builders of AI infrastructure. Its massive campus in Abilene, Texas, already supplies computing power to industry giants like OpenAI and Oracle.

Boom Supersonic, best known for developing the Overture supersonic passenger jet, launched its stationary power business last year. The core concept was to commercialize a derivative of the company’s Symphony engine, called the Superpower turbine. This stationary unit shares approximately 80% of its parts with the airborne engine, allowing Boom to leverage its aerospace engineering expertise for grid-scale power generation.

Scholl had positioned the stationary turbine business as a critical revenue stream to help fund the development of the Overture jet. The Crusoe contract was intended to be the flagship case study for this new venture. With Crusoe out, Boom now faces the challenge of finding alternative early adopters to validate the technology at scale.

Crusoe’s Energy Strategy Shift

Crusoe’s decision to walk away from the Boom turbines highlights the company’s flexible approach to energy procurement. In a statement provided to TechCrunch, Crusoe spokesperson Andrew Schmitt emphasized that the company builds its AI factories with power infrastructure in mind from the ground up.

“We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources,” Schmitt said. “As our portfolio grows, we stay flexible, choosing the energy solutions that are right for each site as its needs evolve.”

The company noted that its current energy mix is diverse, incorporating wind, solar, battery storage, and grid connections alongside traditional turbines. While Boom has been described as a “great partner,” Crusoe concluded that the specific terms or timing of the Superpower deployment did not align with their immediate operational requirements at sites like Abilene.

Crusoe confirmed that its initial 1.2-gigawatt data center in Abilene, designed for Oracle and OpenAI, is currently powered by the electrical grid. A separate gas-turbine plant at that location is reserved strictly for backup power. Meanwhile, a second 900-megawatt facility being built for Microsoft will utilize on-site gas turbines, though it remains unclear if those units will come from Boom or another supplier.

Impact on Boom Supersonic

The loss of its launch customer is a notable blow for Boom Supersonic. The company raised $300 million last year, with a substantial portion of those funds allocated to commercializing the Superpower turbine business. Scholl had previously indicated that profits from the stationary power division would help subsidize the costly development of the Overture aircraft.

Although the Crusoe deal has fallen through, Scholl expressed optimism about Boom’s broader trajectory. He revealed that the company is still on track to deliver approximately 250 megawatts of Superpower capacity next year to other, unnamed clients. Furthermore, Boom is targeting a much more ambitious 1-gigawatt deployment by 2028.

“Boom will be delivering about 250MW of Superpowers next year to other sites, and we’re targeting 1GW in 2028. We’re grateful for the help Crusoe gave us in shaping Superpower and continue cheering for their successes.”

Scholl added that the door remains open for future collaboration. He suggested that if Crusoe’s energy needs evolve to prioritize turbines again, the two companies might reunite. “The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix,” he wrote.

Looking Ahead

The dissolution of the Crusoe-Boom partnership underscores the competitive and rapidly changing landscape of AI infrastructure. As demand for computational power surges, companies are scrambling to secure reliable, scalable, and cost-effective energy sources. The ideal power solution must balance capital efficiency, speed of deployment, and environmental considerations.

For Boom, the absence of a marquee launch client like Crusoe means they must work harder to prove the viability of their Superpower turbine in a market that is still emerging. They will need to demonstrate that their aerospace-derived technology can compete effectively against established stationary power providers.

For Crusoe, the move reinforces its reputation as an agile operator willing to pivot strategies to best serve its clients. By maintaining a diversified energy portfolio, the company aims to mitigate risks associated with any single technology or supplier.

As the AI boom continues to consume vast amounts of electricity, the intersection of energy production and data center construction will likely see more partnerships form and dissolve. Both Crusoe and Boom have significant capital and ambition behind them, suggesting that their paths may cross again in the future, even if this particular turbine deal does not move forward.