US EditionA Shoe Company Rebranded as an AI Firm and the Stock Jumped 630%. One Analyst Says That's a Bubble Warning
The company plans to buy scarce AI chips and rent computing power to startups after selling its footwear assets for $39 million, officials said.
- On Thursday, San Francisco-based Allbirds announced a $50 million deal to pivot from footwear to AI infrastructure, rebranding as "New Bird AI" to operate as a fully integrated GPU-as-a-Service provider.
- Just two weeks ago, Allbirds shuttered its footwear business in a fire sale for $39 million, marking a sharp decline from its $4 billion market cap five years earlier.
- Following the announcement, Allbirds shares skyrocketed more than 700 percent, stabilizing at around $17 from less than $7, as industry leaders OpenAI and Anthropic compete intensely for computing power.
- Critics expressed sharp skepticism across social media; Mother Jones journalist David Corn joked, "I just don't need for them to predict stock market trends for me," while AI skeptic Ed Zitron wrote, "If you don't believe we are in a bubble you are in denial."
- Business fundamentals have taken a backseat as investors chase the next opportunity, with Allbirds positioning itself as an AI cloud solutions provider amid intense competition for compute access among industry leaders.
19 Articles
19 Articles
Allbirds rebrands as NewBird AI, pivots from shoes to GPU cloud computing
In short: Allbirds is rebranding as NewBird AI and pivoting from sustainable footwear to GPU-as-a-service cloud computing after selling its shoe business to American Exchange Group for $39 million. The company secured $50 million in convertible financing, saw its stock surge 600% before falling back by a third, and plans to lease GPUs to AI […] This story continues at The Next Web
The shoe company Allbirds stood before the end - and suddenly decided to switch to business with AI infrastructure. The stock shot up first, but the price fireworks didn't last long.
SF footwear company Allbirds pivots from shoes to AI; sees stock surge by more than 400%
San Francisco footwear company Allbirds is making a hard pivot from making sneakers to creating artificial intelligence cloud infrastructure, sending its stock price soaring by 400% in early trading.
'Peak silliness': Here's what investing pros think of Allbirds' pivot from shoes to AI
Allbirds announced a pivot to AI on Wednesday, renaming itself NewBird AI.Scott Olson/Getty ImagesAllbirds' stock surged on news that the company is leaving behind the shoe business for AI. Wall Street pros have voiced skepticism about the move. Some see Allbirds' strategy to win back investors reminiscent of dot-com-era bubble trends. Allbirds became a meme stock this week after announcing a plan to leave sneakers behind and enter the world of …
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