The fight for compute

The funny news of the morning is that Allbirds has just pivoted to AI compute which resulted in their stock jumping up 300%. The company’s assets were just sold to a party so the company was effectively a shell company at the time, so it is worth noting that it’s up 300% on almost nothing. But regardless, it’s representative of the times we are in.

Compute is everything right now. New frontier AI models are getting more and more powerful, and we do not have the compute to run them. Anyone providing compute seems to be signing large contracts. The question is whether all these providers can deliver on the demand.

We’ll be seeing data centers popping up everywhere. Perhaps Elon is onto something with the data center in space.

If a struggling shoe company is now pivoting to selling the picks and shovels of the gold rush of AI, I wonder who will be next. The fight for compute will be the story of the next 5-10 years. I hope we have our smartest minds and government support in winning that battle for compute.