Allbirds Ditches Footwear Business to Chase AI Pivot, Stock Surges on the Transition - Tekedia

Allbirds plans to rebrand as NewBird AI, exit footwear, and pivot into AI infrastructure.

The company will use $50 million in convertible financing to buy GPUs and offer GPU-as-a-Service and AI cloud products.

The news sent the stock soaring by hundreds of percent before it pulled back, highlighting how quickly AI hype can reprice a beaten-down name.

The move may encourage other struggling companies to announce similar AI pivots despite limited operating experience.