Allbirds shifts toward AI after selling its shoe business

After selling its shoe brand and related assets for $39 million last month, Allbirds is making a dramatic shift toward artificial intelligence. As part of the transition, the company is also changing its name, since the “Allbirds” brand was included in the sale. The new identity: NewBird AI, which describes itself as a “fully integrated GPU-as-a-Service and AI-native cloud solutions provider,” according to an announcement posted on its investor relations website on Wednesday.

Alongside the rebranding, the company disclosed that it has secured a $50 million investment from an undisclosed institutional investor. The funding is structured as a convertible financing facility.

The move marks a striking transformation. The company, once known for producing eco-friendly footwear popular among Silicon Valley professionals, is now positioning itself as a supplier of GPU-based computing power. While such pivots are not unheard of, the scale and nature of this transition stand out. After selling its brand and operating assets, the company retains its public listing—previously traded on Nasdaq under the ticker “BIRD”—and is now realigning its corporate structure to participate in the rapidly expanding AI sector.

The situation has drawn comparisons to past corporate pivots, including the well-known case of Long Island Iced Tea, which rebranded as a blockchain-focused business in 2017. That shift briefly drove a significant increase in its stock price before momentum faded, eventually leading to its delisting from Nasdaq as interest in cryptocurrencies declined.

NewBird AI appears to be aiming for a different outcome. The company stated that both the asset sale and the new financing arrangement remain subject to shareholder approval, with a meeting scheduled for May 18. If the transaction is approved, shareholders are expected to receive a dividend in the third quarter.

The buyer of the Allbirds brand and assets, American Exchange Group, will continue producing footwear under the Allbirds name, ensuring continuity for existing customers.

Looking ahead, NewBird AI plans to allocate its newly raised capital toward acquiring GPU infrastructure, which it will offer to customers seeking computing capacity for AI workloads. Over time, the company plans to expand through partnerships and, as opportunities arise, pursue strategic mergers and acquisitions.