"Allbirds, a failed shoe company that was once popular enough to be a favorite of President Barack Obama, is now a zombie corporation owned by a holding company, getting out of the shoe business."
"On April 15, Allbirds announced that it had received a $50 million injection of funds from an 'institutional investor' and was now going to 'pivot' from shoes to 'AI compute infrastructure.'"
"After this AI announcement, the stock for Allbirds jumped over 350 percent in hours, with shares leaping from $3 to $13."
"Watching a shoe company announce it is now an AI company feels like the biggest sign yet that the AI bubble is about to pop."
Allbirds, once a popular shoe company, is transitioning to an AI-focused business after being acquired by American Exchange Group for $39 million. Initially valued at $1.8 billion, the company faced declining sales and failed clothing expansions. On April 15, Allbirds announced a $50 million investment to pivot towards AI compute infrastructure, planning to become a GPU-as-a-Service provider. Following this announcement, the company's stock surged over 350%, raising concerns about the sustainability of the AI market amid comparisons to past tech failures.
Read at Kotaku
Unable to calculate read time
Collection
[
|
...
]