It makes no sense for their stock to jump. They just declared that their business is dead and they're switching to a totally unrelated industry that they have no experience with or expertise in! Investors should be confused and deeply worried, not enthusiastic!
With what GPUs? The chipmakers are booked up 2 years in advance; a meaningful portion of the helium essential in chipmaking is blocked by the Hormuz situation; and there’s said to be a shortage of “hot boxes” (new fully-equipped data centers with adequate power).
LLMs are a billionaire’s game. 50 million won’t even put a storefront on an AI candy store. 🤦♀️
Crowd-sourcing old PCs and re-using the motherboard, CPU and RAM ;-) Performance-wise it would be the equivalent of 1-horse-buggy-with-a-heavy-trailer, but maybe making people wait for answers which need to be checked afterwards anyway, it would give them time to rethink their questions and if they are worth the spend.
I'm struggling to pay the rent atm, and my car's gearbox is failing. But if Allbirds can make $127 million by pivoting to AI, then why can't I? ... Shit, that won't work, I'm already *in* AI! :-)
The AllBirds announcement is so reminiscent of the Dot.com bubble. Recall when Zapata declared it was going to become an internet company? Peak bubble. The bust happened not long after.
Ellison needs to find ways to support the buyout of Warner Bros. Discovery. That is tricky. Pumping up the Oracle stock price and hence his assets may be the means to bolster the collateral for his bid. That this approach has been used as "funny money" for centuries, just reappearing in different forms and under different conditions, doesn't seem to alert punters to what may be going on.
It is always "But this time it is different!"
BTW, for those not paying attention, OpenAI "paused" its deal with the UK to build datacenters to make the nation a leader in AI. I expect more such behind-the-scenes backpedalling to try to keep the balls in the air. How much of this game is becoming a treadmill for the players, unable to stop for fear of financial implosions?
That was the point of my post. The Zapata announcement was an indication that there was a frenzy around the internet. It took two years for that frenzy to peak. It could easily be another two years before the AI frenzy peaks.
The final pitches are crossing the plate 😆. Where is the capital going to go anyway? Why invest in consumer facing businesses or industries when the whole point is eliminating workers, ie customers. This whole thing is becoming very irrational.
Allbirds Inc. announced a new business plan, AI computing infrastructure, just before it was set to close down, and its shares rose 582% by the end of the trading day.
Well, that's disappointing. I really like Allbirds sneakers. I'm glad they accidentally sent me two pair when I ordered my current pair, so I've got a spare pair in case the brand doesn't survive.
You can tell when a bubble is about ready to pop because even people that shouldn't be in the market are. And then you keep seeing things like a shoe company turning into an AI company and somebody has got to be thinking that this is a great idea, because of course it is. I can't say it's time to go to cash yet, but be ready because that day is coming sooner than you thought yesterday.
Buffet knew how to pick 'em: the stocks of monopolies and oligopolies. Can't miss, plus the government will never break up these dominant firms unless we get the likes of Lina Khan and Jonathan Kanter back into the government.
We live in a world where nonsense is done seriously, and serious things are done like nonsense. 🤣🤣
Yeah, well put.
It makes no sense for their stock to jump. They just declared that their business is dead and they're switching to a totally unrelated industry that they have no experience with or expertise in! Investors should be confused and deeply worried, not enthusiastic!
True, but on the other hand: AI WOOOOOO!!1!
Smh
And to think that these investors have the global economy in their hands
Scary. When it all goes sideways they will retire to their private islands, leaving us to clean up from the party.
HODL
TO THE MOON!
Wow imagine the data center one could build with those 50 million... fits two whole racks!
With what GPUs? The chipmakers are booked up 2 years in advance; a meaningful portion of the helium essential in chipmaking is blocked by the Hormuz situation; and there’s said to be a shortage of “hot boxes” (new fully-equipped data centers with adequate power).
LLMs are a billionaire’s game. 50 million won’t even put a storefront on an AI candy store. 🤦♀️
Or shoe store.
I wonder what Dr. Shoe (aka, Al Bundy) would say about all of this.
Whatever he said would undoubtedly make more sense than anything the company officials are saying.
Crowd-sourcing old PCs and re-using the motherboard, CPU and RAM ;-) Performance-wise it would be the equivalent of 1-horse-buggy-with-a-heavy-trailer, but maybe making people wait for answers which need to be checked afterwards anyway, it would give them time to rethink their questions and if they are worth the spend.
Come now.
Why wait an hour for an answer from ShoestringGPT you can get in five seconds from ChatGPT?
Even if you have to check the answer in both cases to verify it is correct (which you do, of course), that’s nearly an hour more for the former case.
Who can afford to wait that long?
Well 1h is shorter than 5h wait time just because your LLM has maxxed out your token budget while looking at latest product placement from NVidia ;-)
True dat.
I forgot about the token budget.
Tokem if you got ‘em
… and wait ‘em if you don’t
I'm struggling to pay the rent atm, and my car's gearbox is failing. But if Allbirds can make $127 million by pivoting to AI, then why can't I? ... Shit, that won't work, I'm already *in* AI! :-)
So are AI-lbirds
The AllBirds announcement is so reminiscent of the Dot.com bubble. Recall when Zapata declared it was going to become an internet company? Peak bubble. The bust happened not long after.
Ellison needs to find ways to support the buyout of Warner Bros. Discovery. That is tricky. Pumping up the Oracle stock price and hence his assets may be the means to bolster the collateral for his bid. That this approach has been used as "funny money" for centuries, just reappearing in different forms and under different conditions, doesn't seem to alert punters to what may be going on.
It is always "But this time it is different!"
BTW, for those not paying attention, OpenAI "paused" its deal with the UK to build datacenters to make the nation a leader in AI. I expect more such behind-the-scenes backpedalling to try to keep the balls in the air. How much of this game is becoming a treadmill for the players, unable to stop for fear of financial implosions?
Actually Zapata announced in April 1998. The top was still two years away.
It can take longer than you think.
That was the point of my post. The Zapata announcement was an indication that there was a frenzy around the internet. It took two years for that frenzy to peak. It could easily be another two years before the AI frenzy peaks.
The final pitches are crossing the plate 😆. Where is the capital going to go anyway? Why invest in consumer facing businesses or industries when the whole point is eliminating workers, ie customers. This whole thing is becoming very irrational.
Becoming?
Yeah, it's pretty much there in the irrationality department.
It's the perfect definition of capitalism
It's a perfect definition of capitalism driven by Juvenile, Obsessive, One-Think-Only Predators.
And the stock market response IS?
Allbirds Inc. announced a new business plan, AI computing infrastructure, just before it was set to close down, and its shares rose 582% by the end of the trading day.
Greater fool theory on full display.
Well, that's disappointing. I really like Allbirds sneakers. I'm glad they accidentally sent me two pair when I ordered my current pair, so I've got a spare pair in case the brand doesn't survive.
They sold the shoe IP. This pivot is for what’s left of the company.
They should have kept the Shoe IP
You never know when you might need to re-boot the company
You can tell when a bubble is about ready to pop because even people that shouldn't be in the market are. And then you keep seeing things like a shoe company turning into an AI company and somebody has got to be thinking that this is a great idea, because of course it is. I can't say it's time to go to cash yet, but be ready because that day is coming sooner than you thought yesterday.
Hm, is this the equivalent of "An Ode to the Shoeshine Boy" (https://www.pitzlfinancial.com/blog/ode-shoeshine-boy) ?
Remember when Amazon was a bookseller?
And now it looks like Temu and sells as much junk.
This is not as absurd as it might appear.
After all, they do have AI in their name.
And as everyone knows, Allbirds of a feather flock together
Buffet knew how to pick 'em: the stocks of monopolies and oligopolies. Can't miss, plus the government will never break up these dominant firms unless we get the likes of Lina Khan and Jonathan Kanter back into the government.
That is more likely than not.
"Denial ain't just a river in Egypt."
Let's wait until the other shoe drops...
This is a joke, right? Right?
Help?
They may be counting on a Polymarket parlay, including a side bet on their company surviving more than six months.