Crusoe, a Denver-based AI data center startup that recently raised $3.9 billion, has ended plans to use a new line of stationary power plants developed by fellow Denver company Boom Supersonic.
Founded in 2018 as a bitcoin miner that ran on excess natural gas from oil fields, Crusoe has since become one of the biggest builders of AI data centers, including a massive campus in Abilene, Texas, that supplies computing power to OpenAI.
Boom Supersonic, which is developing a supersonic passenger jet called Overture, launched a new business last year to sell a version of the engine it’s developing for that jet as natural gas-fired stationary power plants. Its Superpower turbine shares about 80% of the same parts with that airborne engine, called Symphony.
Crusoe had signed on to be the first customer for this business, agreeing to spend $1.25 billion on 29 of Boom’s 42-megawatt Superpower turbines. The first deliveries were supposed to begin in 2027. But that deal has since fallen apart, according to Boom Supersonic CEO Blake Scholl.
Friday, in a post on X, after congratulating Crusoe founders Cully Cavness and Chase Lochmiller on the company’s recent raise, Scholl said the companies are no longer moving forward with the turbine launch partnership. Although he did note that other customers were in its 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,” he wrote in the post. “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.
“We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources,” spokesperson Andrew Schmitt said in an email. “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.”
Crusoe’s initial 1.2 gigawatt data center in Abilene that was built for Oracle and OpenAI is powered by the grid, according to the company. There is also a gas-turbine power plant that is used for backup power only. Crusoe is also building a 900 megawatt data center in Abilene for Microsoft, which will be powered by on-site gas turbines.
Losing its launch customer is seemingly a setback for Boom, which raised $300 million last year, largely to commercialize the new business. The idea, Scholl told TechCrunch at the time, was to use profits from the stationary power plant business to fund the development of Overture.
Scholl could not be reached for comment before publication; TechCrunch will update this article if he responds.
Facts Only
* Crusoe raised $3.9 billion.
* Crusoe was founded in 2018 as a bitcoin miner.
* Crusoe operates large AI data centers, including one in Abilene, Texas, supplying power to OpenAI.
* Boom Supersonic developed natural gas-fired stationary power plants using the Superpower turbine engine.
* Crusoe signed a deal to purchase 29 of Boom’s 42-megawatt Superpower turbines for $1.25 billion.
* Initial deliveries of these turbines were planned to begin in 2027.
* Boom Supersonic CEO Blake Scholl stated the launch partnership was no longer sensible because the turbines were not part of Crusoe’s near-term primary power mix.
* Crusoe confirmed it is no longer doing business with Boom.
* Crusoe's initial data center in Abilene is powered by the grid, with backup provided by a gas-turbine plant.
* Crusoe is building a 900 megawatt data center for Microsoft in Abilene, which will use on-site gas turbines.
Executive Summary
Crusoe, an AI data center startup, has ended plans to use stationary power plants developed by Boom Supersonic. This decision followed a prior agreement where Crusoe intended to be the first customer for Boom's natural gas-fired Superpower turbines, intending to spend $1.25 billion on 29 units. The initial deliveries were scheduled for 2027.
Boom Supersonic CEO Blake Scholl announced that the partnership was no longer moving forward because the turbines were not part of Crusoe’s near-term primary power mix at sites like Abilene, which led to the launch partnership being impractical. Boom plans to deliver approximately 250MW of Superpowers in the next year and target 1GW by 2028 to other customers.
Crusoe stated that they remain flexible, selecting energy solutions based on evolving site needs, including turbines, wind, solar, batteries, and the grid. The company confirmed it is no longer doing business with Boom, noting that their focus remains on building AI factories powered by diverse energy sources.
Full Take
The narrative illustrates a fundamental tension between specialized commercial partnerships and evolving operational flexibility within high-growth technology sectors. The failure of the partnership stems from a mismatch in strategic timing: Crusoe sought a specific, immediate integration for its power infrastructure that Boom Supersonic was not positioned to provide at that moment, while Boom sought market penetration through large contracts. This reveals how infrastructural advancements, even those with clear engineering potential, are subject to the unpredictable shifts in operational priorities of their end-users.
The move by Crusoe reflects a principle of adaptive strategy: prioritizing systemic flexibility over exclusive integration. When a company is building massive, distributed infrastructure, locking into a single vendor for core components becomes a liability if alternative solutions offer superior flexibility or alignment with evolving site requirements. This pattern suggests that value in industrial partnerships often shifts from fixed transaction agreements to long-term, conditional relationships where technology providers must demonstrate adaptability rather than merely pushing proprietary hardware.
The implication is that the concept of an exclusive "first customer" deal in rapidly evolving technology markets is inherently fragile when operational realities dictate a change in priority. For suppliers like Boom Supersonic, this forces a re-evaluation of value proposition: moving from securing large initial contracts to establishing long-term viability across diverse power mixes becomes more critical than locking down early adopters. The pattern here suggests that true leverage resides not in the initial sale, but in future optionality and the ability to pivot based on where the market demands energy solutions next.
Bridge Questions: How do companies like Crusoe quantify the risk associated with technological lock-in versus maintaining a flexible portfolio? What mechanisms can be developed for dynamic partnership structures that account for shifting operational needs across a customer's lifecycle? What shifts in power source priorities should signal the end of one type of energy partnership and the beginning of another?
Sentinel — Human
The text reads like standard journalistic reporting on a specific corporate negotiation, showing natural variation in tone and focused sourcing.