An anonymous reader writes: Allbirds is pivoting to artificial intelligence. The San Francisco brand, whose wool running shoes were once the sneaker du jour among the tech crowd, announced last week that it was expanding into AI computing infrastructure. The bizarre strategic shift was immediately greeted with a surprising frenzy on Wall Street, where shares of Allbirds soared 582% last Wednesday before dropping the next day. [...] Of course, the absurdity of Allbirds’ situation echoed familiar Silicon Valley tropes — from the endless startup pivots of the 2010s to the more recent boom-and-bust cycles of arbitrarily valued crypto coins. But it immediately reminded me of the marketing ploys of the dot-com crash. After all, some of the more iconic fails ended up being retailers such as Pets.com, Webvan, etc., riding the web wave with little to show for it beyond terrible margins.
One particular comparison from that period stands out as relevant to Allbirds: Zap.com. The holding company behind it, Zapata Corp., had a long and convoluted history, but was essentially selling fish-oil products by the time it decided to reinvent itself as an internet portal. It amassed a variety of web properties — in media, e-commerce, gaming and so on — and even once tried to acquire the search engine Excite. Spoiler alert: Zap flopped.
Jen Heck, then a young employee at one of Zap’s up-and-coming portfolio entities, remembers how quickly the hype of that web 1.0 turned to hell. As absurd as Zapata’s pivot sounds today, it seemed feasible during the excitement of the internet revolution. “We went from like, ‘Wow, this life thing is just so easy,’ to it all ending so suddenly,” Heck recalls. The ones who survived that tech bubble, she says, actually had differentiated products and the right creative thinkers building them — and weren’t just cynically jumping on the latest hot trend. “‘Internet’ was the magic word then, and ‘AI’ is the magic word now,” Heck says.
