00:00So, let me get this straight.
00:01A shoe company sells off its shoe business,
00:04then announces it's becoming an AI company
00:06and its stock jumps 600% in one day?
00:10Here's what's happening.
00:11Allbirds, the wool sneakers you probably saw
00:13every Silicon Valley tech bro wearing in the 2010s,
00:15was once worth $4 billion.
00:18Last month, the whole brand sold for $39 million.
00:22That's a 99% collapse.
00:25So now the company is using what's left
00:26to buy computer chips, the same kind that powers AI,
00:29and rent that computing power to businesses that need it.
00:33Fully rebranding as Newbird AI.
00:36Why?
00:36Because those chips are in short supply.
00:39Right now, companies that are trying to build AI tools
00:41are waiting up to a year just to get their hands on them.
00:44That chip shortage is real
00:45and whoever can fill that gap stands to make serious money.
00:48But some analysts warn that AI investment
00:50is starting to look like a bubble bound to pop.
00:53A stock jumping 600% on an announcement like this
00:56is exactly the kind of swing
00:58that can wipe out regular investors.
01:00But supporters point to the past.
01:01The company, CoreWeave, proves the bet can pay off.
01:04That company started in crypto mining
01:06and made a nearly identical pivot to GPU infrastructure in 2019.
01:10And now, it's one of the most valuable tech firms in the country.
01:13But AI infrastructure expert, Bill Klayman,
01:16said the announcement reads like an April Fool's joke.
01:18His point? Allbirds is starting from nothing
01:21and $50 million isn't even close to what it takes to compete in this space.
01:25So the big question?
01:26Is this a smart pivot?
01:28Or is it a failing brand slapping AI on its name to pump up its stock?
01:32Drop your take in the comments, read the full story on our website,
01:35and follow us here for more.
01:36Because if you don't want to adapt it to your heart to quote it for 100.
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