This was fixed by stopping libvirt, removing all files on
/var/cache/libvirt/qemu/capabilities/ and starting it again.

https://bugzilla.redhat.com/show_bug.cgi?id=1160318

Works for me in Ubuntu 14.10

** Bug watch added: Red Hat Bugzilla #1160318
   https://bugzilla.redhat.com/show_bug.cgi?id=1160318

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https://bugs.launchpad.net/bugs/1346430

Title:
  Cannot find suitable CPU model for given data during VM starting

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