"Allbirds' shares skyrocketed by more than 700 percent following its announcement today before stabilizing at around $17, up from less than $7 when trading began this morning."
"The AI industry continues to pour tens of billions of dollars into AI infrastructure, despite having little evidence of being on a road to profitability, further stoking persistent fears over an AI bubble."
"Business fundamentals have taken a backseat as investors restlessly chase the next big opportunity. The stock market has little interest in reality, choosing to believe that a failing shoe company will be able to acquire high-performance, low-latency AI compute hardware."
Allbirds announced a $50 million deal to pivot its business to AI compute infrastructure, rebranding as NewBird AI. The company plans to provide GPU-as-a-Service by acquiring AI chips and renting computing power to tech startups. This shift follows a fire sale of its assets, closing its footwear business for $39 million. Despite a significant drop in market cap from $4 billion, Allbirds' stock surged over 700% after the announcement, highlighting investor enthusiasm for AI opportunities despite concerns of an AI bubble.
Read at Futurism
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