A local tech commentator says Kiwi founded Allbirds' surprise pivot from making merino shoes to AI chips is not as crazy as it sounds.
The Nasdaq listed company once valued at over (US)$4 billion announced this month it was selling its intellectual property and other assets to a private firm, American Exchange Group for (US)$39 million.
On Thursday, it revealed that it had raised up to $50 million to focus on buying AI computer chips, which it can then provide as a service to other firms.
It said it expected to use the money to acquire AI computing assets and serve customers needing dedicated access to AI computing services.
Its shares soared around 600 percent on the news, from around $3 a share to $18 giving the company a market value of around (US)$160 million.
The company will take a new name NewBird AI.
Futurist and CEO of Gorilla Technology, Paul Spain, believes the company spotted an opportunity to provide artificial intelligence infrastructure in the US for companies that can't do it themselves.
Spain said there were challenges for organisations that want to own private AI.
"Part of that challenge is getting the computing power from the big players like Amazon, Microsoft and Google and the price of that, and the challenges with trying to acquire that infrastructure themselves".
Spain said more information would be needed to properly assess the merits of the new plan, but there were good people at Allbirds and while it wouldn't be easy, they might be able to make it work.
Allbirds, known for its merino wool sneakers, was founded in 2015 by former All White Tim Brown and Joey Zwillinger, and listed on the Nasdaq in 2021.
This story was first published on rnz.co.nz |  |
