Allbirds Transitions to AI Industry, Rebrands as NewBird AI
Allbirds has sold its footwear assets to American Exchange Group and is rebranding as NewBird AI, focusing on AI compute infrastructure.
San Francisco-based Allbirds, known for its eco-friendly footwear, has announced a strategic shift to the artificial intelligence sector. The company has sold its brand and footwear assets to American Exchange Group for approximately $39 million.
Following this divestiture, Allbirds is rebranding as NewBird AI and plans to focus on AI compute infrastructure. The company has secured a $50 million convertible financing facility from an institutional investor to support this transition.
The move aims to position NewBird AI as a provider of GPU-as-a-Service and AI-native cloud solutions.
Industry analysts have expressed skepticism about the pivot, noting the significant capital and expertise required in the AI infrastructure space.
Following the announcement, Allbirds' stock surged over 550%, reflecting investor interest in the company's new direction.