Shares in Allbirds surge after maker of wool sneakers announces pivot to AI

Key Points:

• Allbirds, known for its minimalist wool sneakers, announced a pivot to artificial intelligence and rebranded as "NewBird AI," causing its stock to surge 582% amid heavy trading.
• The company, which had lost 99% of its value since 2021 and planned a $39 million sale to American Exchange Company, now aims to focus on acquiring GPUs to support AI computing.
• NewBird AI secured $50 million in funding from an undisclosed investor and will shift from an eco-conscious public benefit corporation to a conventional corporation, deprioritizing environmental conservation.
• Despite past success and celebrity endorsements, Allbirds struggled with declining sales, store closures, and a $20.3 million loss last year, leading to its exit from physical retail in the U.S. this January.
• The company awaits shareholder approval for the sale to American Exchange Company, which it says will enable the pivot to AI compute infrastructure and a vision to become a GPU-as-a-Service and AI-native cloud solutions provider.