Allbirds is rebranding as NewBird AI and pivoting from sustainable footwear to providing technology infrastructure. As part of this transition, the company sold its shoe business to American Exchange Group for $39 million and now plans to offer GPU-as-a-service cloud computing by leasing GPUs to AI.
To support this shift, the company has secured $50 million in convertible financing and plans to purchase powerful computer chips.
Market reaction to the move was volatile. Allbirds shares surged 582 percent by the end of the trading day on April 15, though the stock later fell back by a third. Analysts have met both the company's pivot and the stock's reaction with incredulity.