Allbirds to Raise $50M, Rebrand as NewBird AI After 600% Stock Surge
Allbirds shares surged nearly 600% Wednesday after announcing its pivot from sustainable footwear to AI compute leases, swinging market cap from $21.7 million to $159 million before closing at $103 million. The company will rename itself NewBird AI and raise $50 million in Q2 2026 to acquire high-performance AI hardware.
1. Stock performance swings
Allbirds stock exploded 600% on Wednesday following its announcement to exit the sustainable sneaker market for AI compute leasing, lifting market capitalization from $21.7 million at Tuesday’s close to $159 million intraday. The following day saw a 35% drop, before the stock rebounded 7% at Friday’s open, ending the week at a $103 million market cap.
2. Name change and funding plan
The company plans to rebrand as NewBird AI and raise $50 million in equity financing, with the round expected to close in the second quarter of 2026. Proceeds will fund the acquisition of specialized AI hardware to support the firm’s new leasing business model.
3. Strategic pivot to AI compute leasing
NewBird AI intends to acquire high-performance, low-latency AI compute hardware and offer it under long-term lease arrangements. The move targets enterprises and research organizations struggling with GPU lead times and North American data center capacity constraints, aiming to fill a critical gap in AI infrastructure supply.