Allbirds plans to rename as NewBird AI and shift to AI computing

In short: Allbirds says it wants to stop being mainly a shoe company and become a provider of computing power for AI.

What happened

Allbirds, the San Francisco company known for wool trainers, says it plans to pivot its business to AI computing infrastructure. That means it wants to buy and run specialized computer chips and rent that power to other companies, similar to renting out heavy equipment instead of owning it.

The company says it has a long-term goal of offering “GPU as a service.” A GPU is a type of chip often used to train and run AI models (think of it like a powerful engine for certain kinds of computing tasks). Under the plan, Allbirds would aim to sell access to these chips through cloud services, which are rented computers that people use over the internet.

Allbirds also says it expects to change its name to NewBird AI, Inc., if shareholders approve. It plans to raise $50 million through convertible notes, which are loans that can later turn into company shares.

In a filing ahead of a May 18 shareholder vote, the company said it is looking at opportunities in the computing infrastructure market, including buying and making money from GPUs and other high-performance computing equipment. It also said shareholders are being asked to remove references to environmental conservation from its corporate charter, because the new business would focus less on that goal.

Why it matters

This is another example of a well-known consumer brand trying to reposition itself around AI, even if its original business struggled. For regular investors and customers, the key question is whether the company can realistically compete in a very different industry.

Source: Financial Times