Allbirds Transforms into NewBird AI Following Footwear Business Sale
Allbirds has sold its footwear assets and rebranded as NewBird AI, securing $50 million to enter the AI compute infrastructure sector.
Allbirds, previously known for its sustainable footwear, has sold its brand and related assets to American Exchange Group for $39 million. The company is rebranding as NewBird AI, aiming to become a provider of GPU-as-a-Service and AI-native cloud solutions.
To support this transition, NewBird AI has secured a $50 million convertible financing facility from an undisclosed institutional investor. The company plans to use the funds to acquire high-performance GPU assets, offering dedicated AI compute capacity to customers.
The asset sale and financing are subject to stockholder approval, with a meeting scheduled for May 18. If approved, stockholders will receive a special dividend during the third quarter. American Exchange Group will continue producing products under the Allbirds brand.
Following the announcement, Allbirds' stock experienced significant volatility, with shares rising over 550% in early trading.