Myseum takes flight after Allbirds in fresh AI rebrand wave

By Shashwat Chauhan

April 16 (Reuters) - A time aft footwear shaper Allbirds roseate 582% connected its program to "pivot its concern to AI compute infrastructure," societal media steadfast Myseum was up 181% aboriginal connected Thursday successful the latest motion of an ‌investor mania for artificial quality stocks.

Early connected Wednesday, Allbirds said it would rebrand itself arsenic "NewBird AI," having agreed to merchantability disconnected ‌most of its assets and intelligence spot for $39 cardinal past month. Allbirds said astatine the clip that it planned to question shareholder support for the "dissolution and wind-down of ​the company."

After the adjacent connected Wednesday, Myseum said it is "now operating nether the caller sanction Myseum.AI," successful an effort that "illuminates the company's halfway exertion level that volition integrate proprietary privacy-first artificial quality (AI) into its unafraid messaging and societal media platforms."

The firms' advertised pivot to AI underscores however the sector's presumption arsenic a magnet for concern superior tin besides supply tiny firms with struggling bequest businesses a accidental to rise funds -- perchance astatine the disbursal ‌of investors who bargain successful aft the shares ⁠have already tally up. On Thursday, Allbirds was down 29.5%.

"It does look similar this is highest AI erstwhile you've got companies similar Allbirds pivoting to information centres and GPUs," said Kathleen Brooks, probe manager astatine XTB.

"It decidedly ⁠encapsulates the magnitude of frenzy that determination is successful the AI market, but possibly they're conscionable a spot late. Allbirds are not the aboriginal birds, that's for sure."

This pivot echoes past efforts by tiny U.S. firms that reshaped their concern models to pat capitalist enthusiasm.

In 2017, beverage shaper Long Island Iced ​Tea ​Corp pivoted to blockchain exertion nether the sanction Long Blockchain. U.S. securities regulators ​later brought an insider trading lawsuit that resulted successful ‌one suspect agreeing to wage $75,000 without admitting oregon denying the allegations.

Allbirds' Wednesday announcement sent its shares up arsenic overmuch arsenic 872% connected Wednesday. The institution said it would execute a $50 cardinal convertible financing statement with an unnamed organization capitalist and plans to usage the proceeds to get graphics processing units (GPUs).

"A $50 cardinal concern is simply a driblet successful the bucket successful the broader neocloud market, wherever astir companies tally capex budgets good into the billions of dollars," William Blair analysts led by Dylan Carden said successful a note. The analysts dropped their sum connected the stock.