Crusoe Abandons $1.25B Boom Turbine Plan for AI Data Centers

Crusoe recently raised $3.9 billion. Founded in 2018 as a bitcoin miner that ran on excess natural gas from oil fields, it has become one of the biggest builders of AI data centers, including a massive campus in Abilene that supplies computing power to OpenAI.

Boom Supersonic is developing a supersonic passenger jet called Overture. Last year it launched a new business to sell a version of the engine it is developing for that jet as natural gas-fired stationary power plants. Its Superpower turbine shares about 80% of the same parts with the airborne engine, called Symphony. Crusoe had signed on as the first customer, agreeing to spend $1.25 billion on 29 of Boom's 42-megawatt Superpower turbines. The first deliveries were supposed to begin in 2027.

According to Scholl, that deal has since fallen apart. In a post on X, after congratulating Crusoe founders Cully Cavness and Chase Lochmiller on the company's recent raise, Scholl wrote: "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." He added: "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. The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix."

Crusoe confirmed to TechCrunch that it is no longer doing business with Boom. Spokesperson Andrew Schmitt said in an email: "We build AI factories from the power up, and we're bringing new campuses online across the country, powered by innovative energy sources." He 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 launch customer comes after Boom raised $300 million last year, largely to commercialize the stationary power business. Scholl told TechCrunch at the time that the idea was to use profits from that business to fund development of Overture. Scholl could not be reached for comment before publication; TechCrunch said it would update the article if he responds.