☕️Flip the bird

Good morning.

In today’s finance wtf, Allbirds announced a stunning pivot, pas de bourrée, into AI.

It declared it will henceforth be known as NewBird AI and naturally, the move was gobbled up by markets which saw the stock explode over 700%.

As the FT’s Alphaville aptly put it, the sneaker-maker’s decision to kick-free from its tight-laced shackles was prompted by some serious sole-searching. The company, once valued at over USD4 billion was sold for (less than) pennies on the pound, at USD39 million to American Exchange Group last month.

Allbirds said a new USD50 million raise from an unidentified institutional investor will allow it to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service and AI-native cloud solutions provider.

That’s certainly one way to flip the bird.

🏆 LOI Subscriber #TBD

Market movers

Shares in gold miner Evolution Mining surged on Wednesday after the company reported it had swung to a net cash position of $42 million, against $362 million of net debt in the prior quarter. It also reaffirmed expectations to come in below its original cost guidance for the full year.

The quick sync

• Anduril nearly doubled Australian revenue to $213.3m in 2025, with more Ghost Shark contracts expected under the upcoming National Defence Strategy. (Capital Brief)

• AI-assisted claims are flooding the Fair Work Commission and delaying decisions that actually matter, write George Haros, Dudley Kneller and Luke Brusco (Capital Brief)

• State governments are too addicted to gambling tax revenue to fix poker machine harm in Indigenous communities, advocates warn. (Capital Brief)

• Australia's super funds seek ACCC approval to share cyber intelligence ahead of Anthropic's Mythos threat. (Capital Brief)

• Labor defends the US alliance as new polling shows Australians increasingly doubt Washington is a reliable military ally. (Capital Brief)(Capital Brief)

Trading floor

M&A

• Tanarra Capital takes control of Landchecker to back its proptech growth strategy. (AFR)

• JPMorgan launches new bond sale after strong earnings and trading results. (Bloomberg)

• CleanPeak Energy, backed by KKR, is expanding by acquiring Sustainable Energy Infrastructure. (AFR)

• RadPartners emerges as bidder for I-MED ahead of potential $3b deal or IPO. (The Australian)

• Papa John’s and Pizza Hut near potential ownership changes amid industry pressure. (Reuters)

• Eucalyptus sale reignites debate over gender bias in healthtech startups. (Startup Daily)

Capital Markets

• Boss Energy lowers FY26 output forecast due to rain delays at Honeymoon site. (Capital Brief)

• Virgin Australia holds FY26 outlook steady despite higher fuel costs. (Capital Brief)

• InterContinental Energy seeks fresh funding for its $100b WA hydrogen project. (AFR)

• Latitude fined $4m by ACMA for repeated spam law violations. (Capital Brief)

• Ryman Healthcare posts 10% rise in retirement sales. (Capital Brief)

• Alphabet could gain USD100b windfall from SpaceX stake as valuation surges. (Bloomberg)

• Nufarm rallies on 17% earnings growth forecast. (Capital Brief)

• CBA stuck with risk after lenders reject Accolade Wines refinance deal. (AFR)

• Stricter private valuations face real-world test amid tech downturn. (Capital Brief)

• Mesoblast stock climbed after gaining exclusive CAR tech rights from Mayo Clinic. (Capital Brief)

• SoftBank raises USD3.6b in bonds as AI investments drive higher debt costs. (Bloomberg)

• Evolution Mining stock jumped on strong $406m quarterly cashflow. (Capital Brief)

• Earthletica raises $1.13m to scale sustainable activewear brand. (Smart Company)

• Gina Rinehart ordered to pay large royalties after Hope Downs court ruling. (Capital Brief)

• Uber invests USD10b+ in autonomous vehicles to compete in robotaxis. (AFR)

• ASML lifts 2026 outlook on strong AI chip demand. (Capital Brief)

• Snap Inc. stock jumped after announcing major layoffs to cut costs. (Capital Brief)

• Bank of America posts record trading revenue in Q1 on strong market activity. (Capital Brief)

• Ferrero faces EU antitrust raids over suspected anti-competitive practices. (Bloomberg)

• Morgan Stanley profits jump 30% on strong trading and deal activity. (Capital Brief)

• Jane Street invests USD1b in CoreWeave to expand AI compute partnership. (Capital Brief)

• Virgin Australia says hedging shields profits for now but fuel cost risk will rise after June. (AFR)

• Allbirds stock surged after pivoting from shoes to AI infrastructure. (Capital Brief)

• Australia boosts defence spending by $53b amid growing global threats. (Capital Brief)

• Goldman and Morgan Stanley see IPO resilience as revenues rise amid strong markets. (Bloomberg)

• Anduril Industries’ Australian revenue surges on defence contracts and spending growth. (Capital Brief)

• KeepCup launches first reusable water bottles beyond coffee cups. (Smart Company)

• Advocates urge federal gambling regulation over harm concerns in Indigenous communities. (Capital Brief)

• Google releases a standalone Gemini app for macOS to improve AI access on Mac. (Bloomberg)

• AI-driven claims are overloading the Fair Work Commission and delaying cases. (Capital Brief)

• Australia’s super funds seek ACCC approval to share cyber intelligence against AI-driven threats. (Capital Brief)

• Thoma Bravo signs multiyear deal with Google for AI adoption (Bloomberg)

• Trump threatens to fire Powell if he doesn’t step down from Fed. (Bloomberg)

• AI-exposed lenders show early credit warning signs, Moody’s says. (Bloomberg)

• Donald Trump warns he could rip up trade deal with UK. (FT)

• Saudi wealth fund resets priorities after decade of heavy spending. (FT)(Reuters)

• Saudi Arabia’s PIF on verge of cutting support for LIV Golf. (FT)

• Banks’ soaring exposure to trading firms creating ‘inherent fragility’, warns S&P. (FT)

VC 

• Voice AI startup Phonely raises USD16m to scale human-like AI call agents. (Capital Brief)

• Clean Slate Clinic raises $4.3m to scale virtual detox platform. (Startup Daily)

• Perth startup Uluu secures $2.1m funding to scale seaweed-based plastic alternative. (Smart Company)

• Australian VC valuations are more rigorous than ever, and they're being tested by a wave of markdowns across the sector. (Capital Brief)

People moves

• HESTA names Robbie Campo as new CEO. (Capital Brief)

• Bank of America hires UBS banker Calum Crozier to co-lead Australian resources advisory team. (AFR)

• BBC to cut up to 2,000 jobs in major cost-saving drive. (Bloomberg)

• Moelis hires Deloitte corporate finance head Alex Jordan to boost Queensland dealmaking push. (AFR)

• Wall Street banks cut 5,000+ jobs even as record profits surge. (Bloomberg)

• Nine Entertainment says Amber Sherlock redundancy was due to restructuring, not discrimination. (AFR)

• Kimberly-Clark sets leadership plan for post-Kenvue merger, with CEO Mike Hsu to lead the merged group. (WSJ)

The watercooler