Allbirds, a company previously known for its sustainable footwear, announced a dramatic pivot from shoes to artificial intelligence (AI) compute infrastructure on Wednesday, resulting in a surge of more than 300% in its share price. The stock, which traded below $3 the previous day, soared to over $10 following the announcement [1]. The company revealed plans to rebrand as NewBird AI and disclosed a deal to raise up to $50 million in funding, expected to close in the second quarter of 2026 [1].
According to the company's release, NewBird AI will focus on acquiring high-performance, low-latency AI compute hardware and providing access to this infrastructure under long-term lease arrangements. The company aims to address customer demand that spot markets and hyperscalers are unable to reliably service [1].
In a related move, Allbirds announced last month a deal with American Exchange Group to sell its intellectual property and other assets for $39 million. American Exchange Group, a brand management company in the accessory space, will continue to sell products under the Allbirds brand [1]. Additionally, Allbirds closed all of its U.S. full-priced stores in February [1].
The company's pivot comes after a period of significant decline, with sales dropping nearly 50% from $298 million in 2022 to $152 million in 2025 [1]. The announcement positions Allbirds as the latest in a series of struggling companies seeking to capitalize on the AI boom that has captivated Wall Street since the launch of OpenAI's ChatGPT in 2022 [1].
CONCLUSION
Allbirds' unexpected shift to AI compute infrastructure has triggered a dramatic rally in its stock, reflecting investor enthusiasm for AI-related ventures. The company's strategic rebranding and asset sale mark a decisive break from its troubled footwear business, as it seeks to reinvent itself in a high-growth sector.