Allbirds, formerly known for its sustainable footwear, has rebranded as NewBird AI, marking a complete shift from shoes to artificial intelligence infrastructure. The company has secured $50 million in convertible financing to build a GPU-as-a-Service platform, targeting AI computing markets, according to TechCrunch and Quartz.
This pivot comes after Allbirds sold its footwear assets for $39 million following a steep decline from its previous $4 billion valuation, Fortune reports. The strategy focuses on leasing high-performance GPU hardware to hyperscalers and AI market players, aiming to capitalize on the growing demand for AI compute power.
The transition has triggered a remarkable surge in NewBird AI's stock price, which has increased between 300% and over 700% across various sources, including CoinDesk, Decrypt, and Fortune. This investor enthusiasm reflects confidence in the company's new direction and the broader AI infrastructure market trend.
Previously trading below $3 per share, NewBird AI’s stock recovery highlights the market's reaction to the rebranding and strategic shift, as noted by Quartz and Zero Hedge. The company is moving aggressively into AI chip infrastructure development while divesting from its traditional shoe business.
Going forward, the industry will closely watch NewBird AI’s execution on its AI infrastructure ambitions and how effectively it competes with established GPU providers. Its ability to leverage the $50 million funding to scale AI computing services will be critical to sustaining investor interest and long-term growth.
NewBird AI
Allbirds, Inc.
