SPLAT! Boom Supersonic’s Quiet Retreat from the Skies

andychalk
5 minutes ago
2 min read

By Andrew Chalk

Boom Supersonic, the startup that has promised a Mach-1.7 successor to the Concorde since 2014, recently issued a press release that was a masterclass in corporate "misdirection." On the surface, the news looked like a victory lap: Boom secured $300 million in fresh funding (at a $1.5 billion valuation) and inked a massive $1.25 billion deal to sell stationary turbines to Crusoe, a data center startup.

CEO Blake Scholl painted this as a "synergistic" move, suggesting the profits from the stationary engines would bankroll the development of their flagship jet, Overture.

However, if you read between the lines, the message is clear: Boom isn't just diversifying; it’s waving a white flag. The dream of supersonic passenger travel is being quietly shelved in favor of a pivot to the energy sector.

The AI Liferaft

The stationary turbine market is currently white-hot, fueled by the insatiable power demands of AI data centers. Established power-gen giants are facing massive backlogs, creating a "delivery-first" market where speed of acquisition trumps efficiency or cost. Boom’s hypothesis is simple: they can build a stationary jet engine faster than GE or Pratt & Whitney can clear their three-year waiting lists.

The $10 Billion Engine Problem

This pivot isn't just a smart business move—it’s a survival tactic. Boom’s Overture jet hit a wall when every major engine manufacturer—GE, Pratt & Whitney, and Rolls-Royce—declined to partner on the project. Left at the altar, Boom made the audacious claim that it would design its own engine, "Symphony," from scratch.

Here is the math that doesn't add up:

Boom’s Valuation: $1.5 Billion.
Cost to Develop a Modern Jet Engine: Approximately $10–$20 Billion.

Even with the Crusoe contract, Boom is billions of dollars short of the capital required to certify a flight-ready engine. Why would any rational board of directors divert finite profits into a high-risk, $10 billion aerospace gamble when they could simply dominate the low-risk stationary power market?

Paper Planes and "Zero-Dollar" Orders

Boom frequently touts a robust order book from Japan Airlines, United, and American Airlines. Yet, the company remains tight-lipped about the specifics of these contracts. In the industry, it is widely suspected that the downpayments and cancellation penalties are negligible—or non-existent. These aren't firm sales; they are marketing placeholders.

The warning signs have been there for years. Virgin Group, Boom's inaugural customer, quietly let its options expire in 2023—the very year the plane was originally supposed to be in service. The delivery date has since drifted to 2029 and beyond.

The verdict? Boom may eventually build a great engine, but it’s increasingly likely that the only place you’ll see it is bolted to the floor of a data center, not cruising at 60,000 feet. Don't hold your breath for the return of supersonic travel; the "Boom" you hear is just the sound of a startup hitting the ground.