Allbirds to Rebrand as NewBird AI After $50m Funding, Shares Surge 300%
Allbirds will exit consumer products and rebrand as NewBird AI, focusing on cloud computing and AI compute infrastructure for data centers after securing $50m investment. The pivot and sale of IP and assets for $39m triggered a 300% surge in shares, lifting stock from $3 to over $10.
1. Pivot to AI Compute Infrastructure
Allbirds announced it will abandon consumer products and focus entirely on supplying cloud computing capacity and AI compute infrastructure under its new name, NewBird AI, targeting data center operators seeking reliable high-performance hardware.
2. Financial Impact and Stock Reaction
The surprise strategic shift, backed by a $50 million funding round, propelled the company's share price from $3 to over $10 at the open, representing a 300% increase as investors embraced the AI pivot.
3. Asset Sale and Rebranding
Prior to the rebranding, Allbirds sold its intellectual property and other assets for $39 million to American Exchange Group, which will continue selling products under the Allbirds brand while the company transitions to NewBird AI.
4. Background and Challenges
Founded in 2015 as an eco-friendly footwear maker once valued at $4 billion, the company faced a 99% share price decline since its 2021 IPO, store closures and tumbling sales before executing the AI-focused turnaround.