Allbirds pivots from shoes to AI, stock explodes more than 400%
A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, DC, February 16, 2021.
Take Drago | Bloomberg | Getty Images
all birds On Wednesday, he made the surprising announcement that he would switch from shoes to artificial intelligence.
The move sent the small-cap company’s shares up more than 400%. Shares, which were below $3 the day before, rose above $13.
The company announced in a statement published on its website on Wednesday that it is shifting its business to artificial intelligence computing infrastructure. investor relations page.
The new company, expected to be called NewBird AI, announced an agreement to provide up to $50 million in financing, expected to be completed in the second quarter of 2026.
“The company will initially seek to purchase high-performance, low-latency AI computing hardware and provide access under long-term rental arrangements, thereby meeting customer demand that spot markets and hyperscalers cannot reliably serve,” the company said in its announcement.
Allbirds signed a deal American Exchange Group It will sell its intellectual property and other assets for $39 million last month.
American Exchange Group is a brand management company focused on accessories. According to the statement, product sales will continue under the Allbirds brand.
Allbirds closed all of its full-price stores in the United States in February.
The company is the latest firm looking to cash in on the AI boom that has been creating excitement on Wall Street since OpenAI launched its ChatGPT chatbot in 2022.
AI infrastructure is notoriously expensive and complex, but it can also be lucrative. NvidiaDominating the graphics processing units market, it has become the most valuable company in the world with a market value approaching 5 trillion dollars.
The stock market has a history of troubled companies turning to the hot industry of the moment to gain traction. During the Bitcoin boom, many companies will announce a blockchain affiliation or convert directly into a cryptocurrency company to reignite interest in the stock.
Once a Wall Street darling and valued at more than $4 billion, Allbirds was founded in 2015 by former professional football player Tim Brown and renewable resources expert Joey Zwillinger.
The idea was to create a new category of shoes based on natural materials, not plastic and other petroleum products.
In 2016, they introduced their first shoe made from merino wool, the Wool Runner, and it was an instant success, especially among “tech bros” who were drawn to the brand’s comfort and sustainability.
He launched an ambitious store opening plan and went public in 2021, but soon saw his business begin to slow as trends changed, competitors moved in and customer acquisition costs rose.
Between 2022 and 2025, sales dropped nearly 50%, from $298 million to $152 million.
Allbirds one day stock chart.
CNBC’s Ashley Capoot contributed to this report.
