After sale of its shoe business, Allbirds pivots to AI
TechCrunch • • general
Key Points:
- Allbirds has sold its shoe brand and assets for $39 million and is rebranding as NewBird AI, shifting its focus to providing GPU-as-a-Service and AI-native cloud solutions.
- The newly named NewBird AI announced a $50 million convertible financing facility from an undisclosed institutional investor to support its pivot into the AI sector.
- The company plans to use the financing to acquire GPU assets and expand its AI compute services, with ambitions to grow through partnerships and potential mergers or acquisitions.
- The sale and financing are subject to stockholder approval at a meeting scheduled for May 18, after which stockholders may receive a dividend in the third quarter.
- The Allbirds brand and product manufacturing will be handled by the new owner, American Exchange Group, while NewBird AI leverages the existing public company shell to enter the AI market.
