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Crusoe abandons $1.25B plan to use Boom turbines at AI data centers

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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.

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“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 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.

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Mutiu Adepoju: ‘I’m Delighted That Super Eagles Now Have Many Options’

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Super Eagles’ midfielder, Mutiu Adepoju has added his voice to reactions trailing Nigeria’s come from behind 2-1 win over Madagascar in their first match of the 2027 Africa Cup of Nations qualifiers, saying he felt excited seeing new players turn up in the squad.

Sports247 reports that Adepoju, who was fondly called ‘Headmaster’ during his playing days and is now an ambbasador for the Spanish La Liga in Nigeria, noted how the Super Eagles’ goals in the encounter at Godswill Akpabio International Stadium, Uyo were scored by rookies.

With George Ilenikhena of Al-Itihad in Saudi Arabia and Moses Usor from LASK Lodz of Austria making hay on their debuts, thereby saving Nigeria from a potential home defeat in the Akwa Ibom State capital, Adepoju reckoned that the Eagles now have many options to bank on.

He, however, stressed that the players and their head coach, Eric Sekou Chelle must not rest on their oars, as they have many more matches to play before they pick the AFCON 2027 ticket, while also pointing out that other fixtures also lie beyond the continental showpiece.

“It’s a good way to start the qualifier with a victory, not minding that we conceded first. The most important thing is that the team won against Madagascar. I am delighted that we have so many options that can play for the Super Eagles.

“That’s a very good development. It is now left for the coach to know who he wants to start. He knows the composition of the team right from the beginning and will definitely know who to start,” concluded Adepoju, who scored six goals in 48 games for Nigeria.

Sports247 reports further that Adepoju shot into limelight as a member of Nigeria’s under-20 team that achieved ‘The Damman Miracle’ at the 1989 FIFA World Youth Championship in Saudi Arabia, where he got a brace against United States in the semi-final but could not score in a final 2-0 loss to Portugal.

He got his senior debut against Togo in August 1990, then featured at the 1992 Africa Cup of Nations, helped Nigeria win the next edition two years later and was part of Nigeria’s maiden FIFA World Cup squad at USA 1994.

Adepoju was also in the squad to the 1998 Mundial in France, where he scored in a 3-2 win against Spain, a goal which he netted with his trade mark header and would declare years later that it was his proudest strike for Nigeria and best World Cup moment.

At club level, he featured for Shooting Stars of Ibadan, Julius Berger of Lagos, Real Madrid B, Racing Santander, Real Sociedad, Salamanca, Eldense and Cobeña of Spain as well as Al-Ittihad of Saudi Arabia, Samsunspor of Turkey and AEL Limassol of Cyprus.

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Insurers claim AI is already increasing healthcare costs

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Hospitals’ use of artificial intelligence tools as they submit insurance claims led to an additional $942 million in healthcare spending over a two-year period, according to an analysis by the Blue Cross Blue Shield Association.

The BCBSA analysis found “a sharp increase in patients being documented as having complex conditions,” but argued there is a “clear disconnect between [medical] coding and treatment,” as there’s “no evidence of corresponding change in care delivered.”

The New York Times pointed the analysis as just the latest sign that AI is contributing to an increase in healthcare costs. While battles between hospitals and insurers over treatments and payments are nothing new, the NYT said the use of AI on both sides seems to be making it worse.

Dr. Shiv Rao, founder of AI startup Abridge, acknowledged that the use of AI could lead to “a horrible dystopic future nobody wants to live in,” with “bots fighting bots, agents fighting agents.” But Rao said it might also reduce tensions and cut costs.

And the BCBSA’s senior vice president Luke Chalker resisted characterizing the situation as a battle, claiming, “It’s not a war. It’s a completely one-sided blood bath,” with insurers on the losing side.

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