tech
Shares in Allbirds surge after maker of wool sneakers announces pivot to AI
Rebrand as NewBird AI sent shares up 582% in bizarre and rapid turnaround for firm that had fallen on hard times
TL;DR
- Allbirds announced a pivot from footwear to artificial intelligence, rebranding as 'NewBird AI'.
- The company's stock surged by 582% following the announcement.
- This pivot is a significant turnaround for a company that had lost 99% of its value since 2021.
- Allbirds plans to focus on acquiring graphics processing units to support AI compute.
- The company secured $50 million in funding for its new AI operation.
- Allbirds will shift from being an eco-conscious public benefit corporation to a conventional corporation.
- The company had previously struggled, announcing a $20.3 million loss in the third quarter of last year and closing its last US physical stores in January.
- Allbirds is awaiting shareholder approval for its sale to American Exchange Company, which is intended to facilitate the pivot to AI compute infrastructure.