Latest / Black Box Theory Podcast / BBT #13 Snippet | Allbirds Sold Its Shoes for $39 Million and Called Itself an AI Company
Transcript
- Thomas: We're moving into AI. The shoes, people who don't know, is a shoe brand. Malcolm: Crazy, crazy, crazy, crazy, crazy, This is honestly one of the craziest things I've ever seen. ⁓ Yeah, like for, okay, so I'm a, oh wow, you know what's crazy? Bro, their stock, okay, so it started to, yeah, so now it's actually going right back down to so, right? it went, right, right, you feel me? It's down to $2, right? I mean, it started, it was trading at what, 250, 250 share, jumped up 800%, 21.95, now it's back to $10. Thomas: It's going back down. Mike, can we get a visual? Malcolm: It's coming right back down and like I told you, like everybody that pumped this joint up was just out of their mind. to level set for all my people that may not be familiar with Allbirds or what it is that we're talking about, right. So we are talking about Allbirds, stock ticker bird, B-I-R-D. Allbirds is a, bro, their stock on Wednesday. It soared nearly 600 % on news of the AI pivot. Allbirds is a Sioux company. Allbirds, I repeat, is a Sioux company that made a huge pivot to AI. So they're putting footwear in its rear view. ⁓ as their tech founders are taking a longer term view on the technology landscape. So what they're doing to make this kind of pivot, and when I say this is like literally all chips in, all bets on the table, the sneaker brand, selling their intellectual property and all of its footwear assets to American Exchange Group, which is a brand management firm, for $39 million. So in exchange for $39 million, AllBirds is now changing its course. They said on Wednesday that it linked a definitive agreement with an unnamed institutional investor for a 50 million convertible financing facility to enable it to pivot its business, get this, from shoes to AI compute infrastructure. This company just sold all of its assets, all of its IP, all of its intellectual property, shoes, everything for $39 million, signed a definitive agreement for $50 million, and said, yeah, you know what? Now we're doing AI compute infrastructure. have never, and this should tell everyone that doesn't think like the AI, the like bro, AI, this is like, you can slap any, you can slap any, you can slap AI on anything and your stock will soar. This has been, this is crazy to me, bro. Like I have never seen a stock get inflated this quickly from a pivot this sudden ever in my life. For one, I've never seen a company do this. To go from, this is like Apple. Thomas: Bubble, man. Malcolm: stop, if Apple stops selling Macs, iPhones, HomePods, Apple, all their product, all their entire product line, they started selling crocheted hats. That's like what, like what type of, so their aim long-term is to become, they want to become a cloud-based service provider. They want to integrate GPUs as a service. So GPU AAS as an AI native cloud solutions, right? Basically all, right. Anyone that knows about what it would like when it comes to GPU integration and data source build out or Thomas: $39 million. Okay. Malcolm: data center build out, we're talking in the tens of billions, not millions, right? So they're also changing their name to New Bird AI. So All Birds to New Birds AI. Their stock gets surged to, it went from 2, it closed on Tuesday at 2.49. It surged to 1,945 in midday trading. That's a nearly 600 % gain, right? So they renamed to Newbred AI. They expect to use capital from this convertible financing facility to acquire high performance GPU assets that, ⁓ and over time as it grows, this NeoCloud platform, it will evaluate strategic ⁓ &A, is merging acquisition opportunities. So they want to buy these GPU assets, these high performance GPU assets, start building up their cloud infrastructure. integrating GPU as a service to different clients and customers and to their own workflows and their own kind cloud system. ⁓ And as they grow that those these assets, they're going to start evaluating opportunities to merge to sign partnerships and deals, same with OpenAI is doing. ⁓ So yeah, they are. It's it's ⁓ it's crazy, bro, because it's like. Thomas: Cook, man. Malcolm: It's- it is- it is, ⁓ Thomas: dot com all over again. Malcolm: Yeah, it's crazy. It says the document. Thomas: You