Our Shoe Company Is Now An AI Company

Snap Inc. is undergoing significant layoffs, cutting about 16% of its global workforce, approximately 1,000 employees. CEO Evan Spiegel attributes these cuts to advancements in AI technology that have improved efficiency, enabling faster work processes and cost reductions—projected to save over $500 million by the year's second half. Despite modest revenue growth of 12% in Q1, stock prices have fallen nearly 31% for the year amid regulatory pressures and challenges in user growth. The company is also focusing on developing augmented reality glasses and relies on external firms for AI infrastructure, especially after activist investors urged more aggressive cost management.

Allbirds, a once high-flying shoe company valued at over $4 billion, sold for just $39 million, marking a complete collapse in its valuation. The company plans to pivot by transforming into New Bird AI, a provider of GPU and AI compute infrastructure. This move involves raising $40 million via convertible notes and possibly changing its name, aiming to become an AI-native cloud solutions provider. The shift is a drastic turnaround from its original eco-friendly footwear brand, leveraging its remaining shell company to invest in AI hardware and services, reminiscent of past bold but ultimately unsuccessful tech pivots like Long Island Iced Tea’s blockchain rebrand.

OpenAI is rolling out GPT-5.4 Cyber, a version of its model tailored for cybersecurity use cases. This finely-tuned variant is designed to detect software vulnerabilities and assist organizations in fixing issues. It is being introduced to select participants in OpenAI's Trusted Access for Cyber program, with plans to expand access gradually. The model allows more permissive probing in cybersecurity tasks and represents an ongoing effort to embed AI more deeply into security workflows.

Google has launched a Windows desktop app that offers a Spotlight-like search function across the web, Google Drive, local files, and installed apps, with AI integration features such as Google Lens and follow-up prompts. The app aims to replicate the mobile search experience on desktop and is now available globally for Windows. Additionally, Google has introduced Chrome AI Skills—a set of repeatable prompts accessible via a keyboard shortcut—that allow users to automate tasks like content summarization, recipe analysis, and more. These features aim to boost productivity and streamline web workflows, with plans for Mac OS support in development.

Law firms are finding that AI-generated documents and emails are increasing their workload rather than reducing it. Lawyers are spending more time reviewing lengthy AI-created correspondence, which can slow down response times and increase costs, especially under fixed fee arrangements. Some firms are contemplating raising fees or adjusting billing strategies to account for the additional review time. The trend includes clients submitting AI-generated patents and strategies, often needing validation and review, underscoring AI’s impact on legal workflows. Despite these challenges, some firms report AI contributing to internal job reductions, though concerns around confidentiality and accuracy remain.