tech
Struggling shoe retailer Allbirds makes bizarre pivot to AI, adds $127 million in value
Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million in March.
TL;DR
- Allbirds is pivoting its business model from shoes to AI compute infrastructure.
- The company's stock surged by 582% following the announcement.
- It plans to operate under the name NewBird AI and aims to raise up to $50 million in funding.
- The company will focus on acquiring and leasing high-performance AI compute hardware.
- This pivot comes after Allbirds sold its intellectual property and assets for $39 million and closed its U.S. stores.
- The AI sector has seen significant growth, with companies like Nvidia becoming highly valuable.