Allbirds sold its brand and footwear IP to American Exchange Group and WSG Brands for $39 million and renamed itself Smartbird to pivot into AI infrastructure services. The company doubled its convertible financing facility from $50 million to $100 million and is designing its first AI cluster deployments.
Allbirds completed the sale of its brand and footwear intellectual property to American Exchange Group and WSG Brands for approximately $39 million. Following the transaction, the company renamed itself Smartbird and shifted its core focus from retail operations to developing AI infrastructure services.
To support its new strategic direction, Smartbird expanded its existing convertible financing facility from $50 million to $100 million. This increase in available capital is intended to underwrite initial AI cluster deployments and operational scaling.
Smartbird is in active discussions with prospective customers and has begun designing its first AI cluster deployments. The company aims to position itself as a provider of infrastructure solutions for machine learning workloads.
The original Allbirds brand will continue under an asset-light licensing agreement managed by AEG and WSG Brands. This model targets growth through new product categories, retail partnerships, and international expansion while Smartbird focuses on technology services.
