Al Root

What do supersonic jets and artificial-intelligence data centers have in common? They both need lots of power to make them go.

That commonality, and the seemingly insatiable demand for electrons from those power-hungry AI data centers, is creating some surprising opportunities for companies.

Earlier this week, faster-than-sound jet start-up Boom Supersonic announced a $1.25 billion backlog for its "Superpower Turbine," which can generate electricity, instead of powering a plane, as well as $300 million in fresh capital in a funding round that included ARK Invest.

"The same supersonic technology drives both the Superpower turbine and the Symphony [supersonic] jet engine," reads part of Boom's news release. The Symphony turbine jet engine will power Boom's Overture supersonic jet.

"Superpower accelerates AI data center development by providing gigawatts of new capacity and advances the development and certification of the Overture supersonic airliner by providing engine reliability data, " the statement added.

Of course, the company has a point: Turbine engines can produce thrust or electricity. GE Aerospace and GE Vernova were once one company, making turbines for aerospace and power markets. Woodward supplies parts for both jet engines and "aeroderiviative" turbines.

For the Superpower turbine, AI is probably a better end market than supersonic flight. The supersonic Concorde passenger jet was retired in 2003. Cost, travel range, and lack of consumer demand all conspired to keep jets traveling below the speed of sound, roughly 760 miles per hour. (The Concorde cruised at speeds north of 1,300 miles per hour.)

Not everyone is convinced that entering the world of AI is a good idea for Boom.

"Why are the people creating the world's first bespoke supersonic transport engine diverting themselves to a huge new project that's completely unrelated to their core business?" says Richard Aboluafia, managing director of AeroDynamic Advisory, an aerospace consultancy. "If the AI center people need industrial gas turbines for power, why don't they simply order some off-the-shelf ones from people with experience providing them?"

Part of the answer to the latter question is that AI data centers are scrambling for power and getting technology from anywhere they can. That dynamic has pushed up shares of GE Vernova, which makes low-cost, utility-scale power generation turbines, as well as those of Cummins and Caterpillar, which make smaller power generators.

For now, AI is an opportunity for anyone with turbine technology.

Drone technology maker Kratos Defense & Security Solutions is another example. Truist analyst Michael Ciarmoli reminded investors in a Wednesday report that Boom tapped Kratos' Florida Turbine Technologies unit in 2022 to build engines for the jet startup.

Ciarmoli rates Kratos stock Buy and has a $125 price target for shares. Kratos' stock was down 0.1% in midday trading, while the S&P 500 was down 0.4% and the Dow Jones Industrial Average was up 0.9%. That left Kratos stock up about 191% year to date. Shares have gained mainly on higher demand for drones, and not power generation opportunities.

Maybe other jet engine makers like GE Aerospace, Safran, Rolls-Royce, or RTX could find some new business with AI hyperscalers.

That is just speculation. And in the long run, investors should probably remember that the lowest-cost power generation solutions for a specific application get the lion's share of any business, even if it feels now like anything can work in the AI Wild West.

Write to Al Root at allen.root@dowjones.com

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December 11, 2025 12:14 ET (17:14 GMT)

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