Boom Supersonic raised $300 million by selling turbines for AI data centers. Crusoe ordered 29 turbines capable of generating 1.21 gigawatts, with a backlog of $1.25 billion in orders. The move solves power shortages hitting AI data centers and addresses supply constraints in the market.

Supersonic engines adapted for data centers offer continuous, reliable power generation without needing a water supply. Boom plans to scale production to 4 gigawatts annually by 2030. Major turbine manufacturers face delays of up to seven years for new orders due to supply chain damage and material shortages.

The deal provides crucial funding as Boom works towards commercial production of Overture airliner. The AI industry is desperate for power, with tech companies projected to spend $400 billion on AI infrastructure this year. Financing for data center construction has raised concerns about aggressive accounting practices.

Meta and other tech giants have taken on over $121 billion in new debt for data center infrastructure. Special purpose vehicles and circular investment deals are prompting comparisons to Enron-era accounting tricks. Analysts warn of bubble dynamics reminiscent of the dot-com era.

Read more at Yahoo Finance: Boom Supersonic jet startup pivots to power AI data centers