Allbirds pivots from shoes to AI, BIRD stock soars
CNBC • • general
Key Points:
- Allbirds announced a major pivot from its footwear business to artificial intelligence, rebranding as NewBird AI and focusing on AI compute infrastructure with plans to raise up to $50 million in funding by Q2 2026.
- The announcement caused Allbirds' stock to surge over 700%, jumping from under $3 to above $17, despite the company having a market cap of about $21 million prior to the news.
- The company plans to acquire high-performance AI compute hardware to lease long-term, aiming to serve customer demand unmet by spot markets and hyperscalers.
- Last month, Allbirds sold its intellectual property and other assets to American Exchange Group for $39 million, with the latter continuing to sell products under the Allbirds brand; Allbirds closed all its U.S. full-priced stores in February.
- Founded in 2015 as a sustainable shoe brand, Allbirds saw rapid early success but experienced a nearly 50% sales decline from 2022 to 2025, prompting this strategic shift amid the booming AI industry.
