Svmuu News "Internet-famous shoe" brand Allbirds announced a pivot into the AI infrastructure sector, rebranding as NewBird AI and positioning itself against CoreWeave in GPU computing power. Its stock price surged nearly 600%, but several industry insiders have issued warnings. FifthVantage CEO Matt Domo stated that Allbirds' AI transformation appears more like a tactic to boost its sluggish stock price, and investors should be wary of "AI washing" — a phenomenon where companies exaggerate or even fabricate their AI capabilities for marketing purposes. Furthermore, attempts by companies to latch onto hot trends through aggressive pivots are not unprecedented; many tried to ride the blockchain wave from late 2017 to early 2018.
Jason Schloetzer, Associate Professor at Georgetown University's McDonough School of Business, pointed out that the initial $50 million in funding is "a drop in the bucket compared to the actual investment needed to become a service provider in this category." However, from a more optimistic perspective, the influx of new players into the AI field may also reflect the market's "sustained enthusiasm" for growth.
Seaport Research analyst Jay Goldberg believes it's hard to imagine a company like Allbirds, which is "entering the field midstream," being able to offer competitive products or services in this sector. (Marketwatch)