Crusoe, the Denver-based AI data center startup that recently raised $3.9 billion, has abandoned a $1.25 billion agreement to buy 29 stationary power turbines from Boom Supersonic. The deal would have made Crusoe the launch customer for Boom's Superpower turbine, a natural-gas-fired unit that shares about 80% of its parts with the engine Boom is developing for its Overture supersonic jet.

Boom CEO Blake Scholl announced the split in a post on X, saying the launch partnership no longer made sense because turbines are not part of Crusoe's near-term primary power mix at its Abilene, Texas campus and elsewhere. He said Boom will deliver about 250 megawatts of Superpower turbines to other sites next year and is targeting 1 gigawatt in 2028. Crusoe confirmed it is no longer doing business with Boom; a spokesperson said the partnership was not the right fit today.

The breakup is a setback for Boom, which raised $300 million last year largely to commercialize the stationary power business and use profits to fund Overture. Crusoe's existing 1.2-gigawatt Abilene data center, built for Oracle and OpenAI, runs on grid power, with gas turbines only for backup. A separate 900-megawatt Abilene campus for Microsoft will use on-site gas turbines, according to Crusoe.