In a notable development within the AI infrastructure sector, Denver-based startup "Crusoe" announced the termination of its massive agreement with "Boom Supersonic" to purchase power generation turbines, just a few months after signing the deal that was valued at approximately $1.25 billion. This decision comes at a time when Crusoe is experiencing rapid expansion following a new funding round that raised $3.9 billion.

From Bitcoin Mining to AI Data Centers

Crusoe was founded in 2018 with an innovative idea based on utilizing wasted excess natural gas in oil fields to power Bitcoin mining operations. Over the years, the company underwent a radical transformation to become one of the largest builders of AI data centers in the United States.

Among its most prominent projects is a massive campus in the city of Abilene, Texas, providing enormous computing capabilities to "OpenAI," reflecting the growing role the company now plays in supporting large language models and advanced AI applications.

What Are Boom Supersonic Turbines?

Boom Supersonic is renowned for developing a supersonic passenger aircraft named "Overture." Last year, the company launched a new commercial venture based on selling a version of the aircraft's engine in the form of stationary power generation plants running on natural gas.

This turbine is called "Superpower," and it shares about 80% of its components with the aircraft engine known as "Symphony." The idea was to fund the development of the supersonic aircraft through the profits of the stationary power plant business.

Details of the Deal That Collapsed

Crusoe was the first customer for this new venture, having agreed to purchase 29 Superpower turbines with a capacity of 42 megawatts each, for $1.25 billion, with the first deliveries scheduled to begin in 2027. However, this partnership ended before it saw the light of day.

Boom Supersonic CEO Blake Scholl explained, via a post on the platform "X," that the two parties are no longer proceeding with the launch partnership, noting that the turbines are no longer part of Crusoe's near-term core energy mix in Abilene and its other sites, making the continuation of the partnership illogical.

The Position of Both Companies

Crusoe confirmed that it is no longer dealing with Boom Supersonic, emphasizing its flexible strategy in selecting suitable energy sources for each site. Its spokesperson, Andrew Schmitt, stated that the company builds AI factories "from power up," relying on a diverse mix that includes:

Gas turbines.
Wind and solar power.
Battery storage systems.
Connection to the public electrical grid.

He noted that the partnership with Boom was good, but it simply "isn't the best fit at the current time." For his part, Scholl expressed his gratitude for the role Crusoe played in shaping the Superpower turbine, affirming his continued encouragement for the company's successes and the possibility of future collaboration.

Crusoe's Energy Plans

Crusoe's first data center in Abilene, built for "Oracle" and "OpenAI" with a capacity of 1.2 gigawatts, relies on the public electrical grid, with a gas turbine plant for backup power only. The company is also working on building another data center with a capacity of 900 megawatts for "Microsoft," which will rely on gas turbines on-site.

What Does This Mean for Boom Supersonic?

Losing the first customer is a seeming setback for Boom, which raised $300 million last year with the primary goal of launching this commercial venture. Nevertheless, Scholl confirmed the existence of other customers in the company's queue, as it plans to deliver about 250 megawatts of Superpower turbines next year to other sites, targeting a full gigawatt by 2028.

This development reflects the changing nature of the energy market for AI data centers, where flexibility in choosing energy sources remains a decisive factor in the success of massive projects that require enormous and stable capacities.

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