The shoe company has transitioned to focus on AI, no longer producing footwear. Known for its wool sneakers popular in Silicon Valley during the 2010s, Allbirds has announced a dramatic shift. The company revealed it is exiting the shoe market to become an AI firm. An undisclosed investor pledged $50 million towards this pivot, directing funds to data center technology instead of shoes.
Now renamed NewBird AI, the company aims to facilitate access to AI hardware. “The rise of AI development has driven demand for high-performance computing,” it stated. NewBird AI will acquire and lease AI compute hardware to meet customer needs unmet by current markets.
This shift follows Allbirds’ peak valuation over $4 billion after its 2021 IPO. However, the brand faced challenges, ultimately selling for a fraction of its peak value. Following the announcement of its new direction, NewBird AI stock increased by 600%.
Despite the unusual nature of this transformation from clothing to AI, it reflects a growing trend of companies pivoting towards AI.