Allbirds pivots to AI, stock soars after $50M loan
6.9 Investments Allbirds exits footwear, rebrands as NewBird AI, and pivots to AI infrastructure with a $50M loan, causing its stock to surge 300–400%.
Allbirds, once known for its eco-friendly footwear, is making a dramatic shift by exiting the shoe business to focus solely on artificial intelligence infrastructure. The company will rebrand as NewBird AI and has agreed to transfer its footwear brand to American Exchange Group. To support this transformation, Allbirds secured a $50 million convertible loan—more than double its previous market capitalization of $22 million. The funds will be used to acquire high-performance GPU assets and build advanced computing infrastructure for AI services. Following the announcement, Allbirds' stock soared 300–400%, highlighting strong market enthusiasm. This pivot mirrors a broader trend of companies moving into AI and GPU infrastructure amid a global chip shortage and surging demand for computing power.
