Crusoe, a Denver-headquartered artificial intelligence data center developer, has terminated plans to utilize stationary power systems designed by fellow Colorado-based company Boom Supersonic. The cancellation follows Crusoe’s recent announcement that it secured a $3.9 billion funding round to expand its operations.
Originally established in 2018 as a bitcoin mining firm focused on utilizing excess natural gas from oil fields, Crusoe has since transitioned into a major builder of AI infrastructure. The company operates a significant campus in Abilene, Texas, which provides computing capacity for OpenAI. Its strategy involves constructing AI factories starting from the power source outward.
Boom Supersonic, known for developing the Overture supersonic passenger jet, launched a new business unit last year to market a version of its aircraft engine as a natural gas-fired stationary power plant. The Superpower turbine shares approximately 80% of its components with the Symphony engine intended for the Overture jet.
Under the now-cancelled agreement, Crusoe was designated as the launch customer for Boom’s new energy division, committing $1.25 billion for 29 Superpower turbines, each with a capacity of 42 megawatts. Deliveries were initially scheduled to begin in 2027.
Boom CEO Blake Scholl confirmed the breakup on Friday via a post on X. While congratulating Crusoe founders Cully Cavness and Chase Lochmiller on their recent capital raise, Scholl stated that the two companies would no longer proceed with the turbine partnership. He noted, however, that other potential customers remain in Boom’s pipeline.
“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. “Boom will be delivering about 250MW of Superpowers next year to other sites, and we’re targeting 1GW in 2028.”
Crusoe confirmed the end of the collaboration to TechCrunch. Spokesperson Andrew Schmitt emphasized the company’s flexible approach to energy sourcing across its growing portfolio.
“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 – including turbines, along with wind, solar, batteries and the grid. While Boom has been a great partner, the partnership isn’t the right fit today. We wish them well.”
The loss of its first customer represents a notable obstacle for Boom, which raised $300 million last year primarily to commercialize its stationary power plant business. Scholl had previously indicated that profits from this energy division would help fund the development of the Overture jet. Scholl was unavailable for additional comment before publication.
I wonder if this signals that heavy gas turbines aren’t the silver bullet for AI power needs after all.
Makes sense for Crusoe. With $3.9 billion in the bank, why lock into one supplier when flexibility is key?
Ouch for Boom Supersonic. Losing their launch customer right after raising $300 million stings pretty badly.