Allbirds is undergoing a dramatic transformation, shifting away from its popular wool sneakers to focus on artificial intelligence. The company announced it will rebrand as NewBird AI after securing $50 million in new financing.
This radical overhaul includes divesting its footwear business and acquiring GPUs to offer “GPU-as-a-Service.” The move comes after a period of decline for the once $4 billion company, with shares losing 99% of their value since 2021 and a recent deal to sell assets for $39 million.
The announcement triggered a remarkable surge in the company’s stock price, jumping 582% during Wednesday trading. Despite having no prior experience in the AI sector, Wall Street has reacted positively to the unexpected pivot.
NewBird AI is betting on the growing demand for AI computing power, marking a complete departure from its origins as an eco-friendly shoe brand favored by tech leaders and celebrities.