Allbirds pivots from shoes to AI compute, stock rockets over 800%

Stock surge after an abrupt AI pivot

Allbirds said it is abandoning footwear as its core business and moving into AI compute infrastructure, and the market noticed. The company announced plans to rebrand as NewBird AI, to raise up to $50 million and to complete the pivot in the second quarter, shifting toward buying high‑performance, low‑latency AI hardware and offering long‑term leased access to compute. The reaction was dramatic: after a prior close of $2.49, shares traded above $18 with intraday gains topping 800%, lifting a company now worth under $200 million despite the spike.

From merino wool to distressed retail assets

Allbirds was founded in 2015 by renewable‑materials specialist Joey Zwillinger and former footballer Tim Brown and built a loyal following with merino‑wool Wool Runners. But the brand faded after failed category expansions and slumping sales — revenues fell from $298 million in 2022 to $152 million in 2025 — and the company closed most U.S. full‑price stores earlier this year. It has been reported that Allbirds sold its intellectual property and related liabilities to American Exchange Group for about $39 million, and retained only online sales and two outlet locations.

Skepticism, capital needs and geopolitical context

The move echoes past market theatrics when struggling companies chased investor attention by adding blockchain or crypto plays. But AI compute is a notoriously capital‑intensive business. Tens of millions of dollars will buy only a sliver of the hardware and data‑center footprint required to compete with hyperscalers. There are also geopolitical headwinds: export controls and supply‑chain limits for advanced GPUs have reshaped where and how companies can source cutting‑edge accelerators. Can a rebrand and a small financing round remake a tired shoe maker into a viable GPU‑as‑a‑service vendor? Investors and industry watchers will be watching closely.