Allbirds Soars 580% on AI Pivot

San Francisco-based Allbirds said Wednesday it is changing direction sharply, moving away from shoe manufacturing and into artificial intelligence infrastructure. The company said it will rebrand as NewBird AI and described a new focus on becoming an “AI compute infrastructure” business. Following the announcement, Allbirds’ shares rose by over 580% on Wednesday.

The company disclosed a $50 million deal tied to the new strategy. NewBird AI said it plans to acquire advanced Graphics Processing Units (GPUs) , which it described as critical components for AI computing. The company said it sees a gap in the availability of computing power and intends to position itself to meet that demand.

NewBird AI outlined a longer-term plan centered on providing on-demand access to graphics chips and offering specialized cloud services designed for AI applications. The company framed the shift as a way to align with rising demand for AI computing resources. It also said the transition is aimed at supporting the company’s long-term viability.

The pivot follows a major change to the company’s legacy business. In March , the company sold the Allbirds footwear brand to American Exchange Group for $39 million . The sale marked a decisive step away from the consumer footwear identity that had defined the company since it was founded in 2015 .

Even after Wednesday’s surge, the company said its market capitalization remains more than 90% below its 2021 initial public offering valuation. The company has faced persistent financial pressure since listing on Nasdaq five years ago , and it has struggled to reach profitability over that period. Before the AI announcement, the stock had fallen from over $500 per share to approximately $2.50 .

NewBird AI’s plan depends on building capacity around GPUs and delivering services that can be used by customers seeking AI-focused computing. The company did not detail timelines or operational milestones in the announcement, leaving open questions about how quickly it can execute the transition from its prior business model.

For investors and counterparties, the key unknowns include how the company will deploy the $50 million deal and how it will compete in the market for AI compute infrastructure.