Allbirds’ stock is suddenly back in the spotlight, not because of sneakers, but because of silicon.
The once high-flying footwear brand has stunned investors with a dramatic pivot into artificial intelligence infrastructure, triggering a massive rally in its shares. The company’s stock surged more than 700% in a single day, jumping from under $3 to above $17 and briefly pushing its market cap far beyond its recent lows.
That move reflects broader investor interest in artificial intelligence.
From wool runners to GPUs
The company behind minimalist wool sneakers is shifting its focus. As detailed in , Allbirds announced it will pivot toward AI compute infrastructure, rebranding itself as “NewBird AI.”
Instead of designing shoes, the company now plans to purchase high-performance GPUs, offer GPU-as-a-service, and build AI-native cloud solutions.
The strategy is based on rising demand for AI computing power, which the company says is outpacing supply.
To support the transition, Allbirds secured a $50 million funding agreement for the new venture.
A company in decline finds a new direction
The pivot follows a period of decline.
Once valued at roughly $4 billion, Allbirds experienced falling sales, increased competition, and higher customer acquisition costs. The company also closed all of its U.S. full-price retail stores earlier this year and shifted to online sales.
Allbirds sold its intellectual property and other assets for $39 million, according to CNBC.
Stock reaction
The announcement drove a sharp market response.
Shares rose more than 700% following the news, reflecting investor attention on companies connected to AI infrastructure.
The company said it plans to acquire high-performance, low-latency compute hardware and provide access through long-term leasing arrangements.
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