The AI Bubble Is Starting to Look a Lot Like the Dot-Com Crash
Last week, Allbirds, a company known in tech circles for its wool sneakers and eco-friendly angle, did something that felt too familiar. After selling off its actual footwear business and brand to American Exchange Group for about $39 million (pretty much a clearance sale for what was once a much-hyped company), the remaining public shell announced a sharp pivot into Artificial Intelligence.
They lined up $50 million in financing from an unnamed investor to buy GPUs and rebrand as NewBird AI. According to their press release, the long-term plan is to become a “fully integrated GPU-as-a-Service and AI-native cloud solutions provider,” and they’re even asking shareholders to drop the old environmental “public benefit” charter.
Shares surged over 600% in a day, hitting peaks around $21–23 before cooling off a bit. It was trading under $3 right before the news.
Feels Like Deja Vu
Something feels off about this whole...
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