Allbirds announces stunning pivot from shoes to AI, stock explodes 175%

Shares of the company were up as much as 200% pre-market.

The company announced that it’s pivoting its business to AI compute infrastructure on Wednesday in a release posted to its investor relations page.

The new company, which expects to be called NewBird AI, announced a deal to raise up to $50 million in funding, expected to close in the second quarter of 2026.

“The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service,” the company said in the announcement.

Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million.

American Exchange Group is a brand management company focused on the accessory space. It’s expected to continue to sell products under the Allbirds brand.

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