Struggling footwear company Allbirds has announced a dramatic shift into artificial intelligence infrastructure, triggering a surge of more than 700% in its stock price.
The company said it plans to rebrand as “NewBird AI” and focus on providing high-performance AI computing hardware through long-term leasing, according to its investor release.
BREAKING: Allbirds stock, $BIRD, surges over +200% after announcing they are pivoting from shoes to AI. pic.twitter.com/qPJTDXIqQO
— The Kobeissi Letter (@KobeissiLetter) April 15, 2026
The pivot comes after Allbirds agreed to sell its brand assets to American Exchange Group for $39 million, which will continue selling shoes under the original label. The company had already shut down its U.S. full-price stores earlier this year amid declining sales.
Once valued at over $4 billion, Allbirds has seen revenue nearly halve in recent years due to rising competition and slowing demand. The move reflects a broader trend of struggling firms shifting toward high-growth sectors like AI.
The report said the company aims to raise up to $50 million to fund its new strategy, tapping into strong investor appetite for AI infrastructure.
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